- Glatfelter supplies engineered materials from eleven manufacturing facilities in the United States, Canada, Germany, France, the United Kingdom, and the Philippines.
- Glatfelter has divested non-strategic assets, and is making acquisitions to acquire production capacity in growing markets.
- Glatfelter Corporation noted in its annual report that it now owns a portfolio of products with a predictable cash flow profile.
- I ran two scenarios, with a WACC of 8% and a WACC of 9.5%. My sales projections include sales of $1.32 billion in 2025 and 2025 FCF/Sales of 4% in 2025.
- I assumed a terminal FCF of $59 million, future net debt of approximately $219 million, and a share count of 44 million. With these figures, the implied share price is $20-$33. Given the current share price of $14-$17, there is an upside potential in the company’s valuation.
For further details see:
Glatfelter: Predictable Cash Flow And Undervalued