2024-07-03 10:00:00 ET
Summary
- Alleima exceeded expectations with robust 2023 results, reporting strong free cash flow and a 7% increase in EPS.
- Despite a temporary dip in net profit expected for FY 2024, consensus estimates show growth in EBITDA for 2025 and 2026.
- Alleima's stock price remains attractive, trading at 5.5 times next year's EBITDA with a solid balance sheet and stable dividend payout ratio.
Introduction
Almost 18 months ago, I discussed Alleima ( OTCPK:SAMHF ) in an article here on Seeking Alpha . The company had just been spun off from Sandvik ( OTCPK:SDVKY ) ( OTCPK:SDVKF ) and I argued the stock was trading too cheap as it was trading at less than 4 times its EBITDA. I was also expecting the company to generate in excess of 1B SEK in free cash flow in 2023, and I think this may be a good time to follow up on Alleima and see if the company has met my expectations and to see what we can expect in the near future....
Read the full article on Seeking Alpha
For further details see:
Alleima: A Stainless Steel Niche Player At 5.5 Times EBITDA