TCLAF - Transcontinental Inc.: Deeply Undervalued While Transitioning From Printing To Packaging
Investment Thesis
Price is what you pay. Value is what you get. - Warren Buffett
Investors continue to dismiss Transcontinental given its legacy, to what is perceived to be a terminally declining print industry. This has driven the stock down to a low valuation, selling for a forward P/E of <6 and a free cash yield of 18%. In my opinion, this is not only an overly pessimistic view, but also an outdated view. Transcontinental Inc. has made major investment in the Flexible Packaging a modestly growing industry, while continuing to efficiently work its declining