BNTGF - Brenntag: Why The Company Is Great But No Longer A 'Buy' (Rating Downgrade)
2024-01-29 14:17:27 ET
Summary
- Brenntag is a solid chemical distributor with a stable business model and strong earnings track record.
- The company's anti-fragile business model and a sales mix make it resistant to overall industry trends.
- Despite challenges in the macro environment, Brenntag remains well-positioned for the future with a focus on M&A and the execution of its strategy. However, the company is more expensive now.
- I'm shifting my rating to "HOLD".
Dear readers,
I love Brenntag (BNTGY) as an investment. I've written two positive articles since I started establishing a major position in the business, and the company has kept performing well, with a far more significant upside in the last month and more. Since my first investment in the company, we've seen RoR of over 35% inclusive of dividends, which outperforms even the impressive tech-heavy NASDAQ during the same 7-8 month timeframe.
Brenntag is a solid chemical distributor with a stable business model and a strong earnings track record. It operates in both essentials and specialties, but its main advantage is that it's a chemical distributor, rather than a producer. Its business model and sales mix make it anti-fragile in a way that resists overall industry trends....
Brenntag: Why The Company Is Great, But No Longer A 'Buy' (Rating Downgrade)