SEE

Sealed Air Corp

Industrial/Transportation


Presented:05/29/2018
Price:$44.54
Cap:$7.36B
Current Price:$34.99
Cap:$5.10B

Presented

Date05/29/2018
Price$44.54
Market Cap$7.36B
Ent Value$10.15B
P/E RatioN/A
Book ValueN/A
Div Yield1.44%
Shares O/S165.30M
Ave Daily Vol1,718,260
Short Int4.17%

Current

Price$34.99
Market Cap$5.10B
Sealed Air Corp. engages in the provision of food safety and security, facility hygiene and product protection services. It operates through the following segments: Food Care, Diversey Care, Product Care, and Other. The Food Care segment focuses on providing processors, retailers and food service operators a broad range of integrated system solutions that improve the management of contamination risk and facility hygiene during the food and beverage production process, extend product shelf life through packaging technologies, and improve merchandising, ease-of-use, and back-of-house preparation processes The Diversey Care segment represents the broad offering of Diversey branded system solutions for facility hygiene, food safety and security, and infection control. The Product Care segment offers costumers a portfolio of Product Care systems designed for use across a range of applications and industries. The Other segment involves medical applications and new venture businesses. The company was founded by Alfred W. Fielding and Marc Chavannes in 1960 and is headquartered in Charlotte, NC.

Publicly traded companies mentioned herein: Sealed Air Corp (SEE)

Highlights

The presenter is long shares of Sealed Air (SEE), and believes the risk/reward is favorable at ~$45. He explained how shares fell “out of favor” with investors following former CEO Jerome Peribere’s failure to deliver on top line growth after the 2015 Investor Day. Additionally, the communication surrounding the $3.2B sale of its Diversey Care division and the food hygiene and cleaning business to Bain Capital Private Equity could have been handled better, in his opinion. Regardless, he sees mix and price/cost spread trends in both Food Care and Product Care turning up, and growth in e-commerce and fresh foods should drive upside for shareholders. If the stock can trade at 18x a $3.25 (FCF/share) estimate for 2019, it could reach $58 in 12 - 18 months.

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Idea Discussion

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