CKNHF - Clarkson PLC: Shipbroking Business Trading At An EV/FCF Of Just 11

2024-05-06 10:30:00 ET

Summary

• Clarkson PLC is a UK-based company in the shipping industry, generating the majority of its revenue from shipbroking services.
• That division reported a 4% increase in revenue in 2023.
• Clarkson has a strong cash position and an asset-light business model, making it an attractive investment in the shipbroking industry.

Introduction

Clarkson PLC ( CKNHF ) is a UK-based company active in the shipping industry, generating the majority of its revenue and income from shipbroking services. Shipping still is a major way for goods to be transported all over the world and according to recent estimates, about 85% of the global trade is carried on ships. Every year, about 1.6 tonnes per capita are shipped by vessels, so being an important shipbroker should allow you to at least grow with the market if your customers are happy with the services you provide. I don’t expect the total amount of goods that are shipped to decrease anytime soon...

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