MIK - CSS Industries: Look Past The Numbers
From any fundamental standpoint, craft, seasonal, and gift manufacturer CSS Industries (CSS) looks ridiculously undervalued. At the end of Q3, the midpoint of FY19 (ending March) guidance suggested an EV/EBITDA multiple right at 5x. But cash builds in fiscal Q4; balance sheet figures as of January 31st cited in the Q3 release move the multiple to 4.4x, and the actual year-end figures could get the number closer to 4x.
Asset-based valuations look close to ridiculous. Book value is about $25 per share, implying a 0.3x P/B multiple at Friday's close of $7.51. Tangible