Summary
- Marubeni has many advantaged businesses, but they are still largely commodity exposures.
- Its comprehensive PE looks slightly low in relation to its business exposures, dragged down by coal exposures in terms of multiple.
- The rest of their exposures, like utilities and consumer products, are less commodified. The stock provides a good earnings yield thanks to a low multiple.
- The problem is without a dividend and difficulties of price discovery in Japanese markets, the company will have some return challenges.
For further details see:
Marubeni Is Cyclical, But Its Parts Appear Undervalued