EBRO
🍚 Ebro Foods is the largest group in the food sector in Spain, specializing in rice and pasta.
🌎 The company is highly internationalized, with only 7% of its sales from the local market.
🛡️ Ebro Foods is considered a defensive business, making its earnings predictable regardless of the macroeconomic scenario.
✅ Currently trading below its historical average, suggesting it may be undervalued.
@Invierteygana:
“Ebro Foods is the largest group in the food sector in Spain. Its main products are rice, with 78% of its sales, and pasta. The company is quite internationalized; only 7% of its sales come from the local market. The company is a world leader in the rice sector and the second-largest pasta manufacturer in the world. It has brands like the ones we see. Its revenues have been growing since 2010, although not in 2021 because they sold a division. In 2020, the profits follow a similar trend and also decreased in 2021 due to the sale of that division. The money from this sale was used to reduce debt and also to pay an extraordinary dividend. Ebro has a net margin of 6%, which is somewhat low. Its debt is quite controlled, and the current dividend yield is above 4%. Currently, it is trading at a P/E of 13, below its historical average of 16, so it would be somewhat cheap. The market values it at these multiples due to the defensive nature of the business, which makes it very predictable what the company is going to earn, regardless of the macroeconomic scenario. For this reason, I consider the risk of the company to be low.”
Watch the exact part of the video where the speaker talks about Ebro Foods here:
Watch the video on YouTube.
Read more articles by the world’s top 100 analysts on Ebro Foods (EBRO) at the following link. EBRO stock.
