- Natuzzi S.p.A. has no research coverage and trades at a significant discount to peers and intrinsic value. The business is inflecting.
- The company trades at ~20% of forward sales and below tangible book – which significantly understates the value of the Natuzzi brand.
- NTZ has sufficient liquidity and low debt: with €39M euro in cash, ~€35M in pending asset monetization, and a pending €40-€65M Italian government loan with a very favorable repayment schedule.
- NTZ should generate at least a .50 cent per share operating profit in Q4. Manufacturer backlogs are full for many months, NTZ should be running at full capacity for the next few quarters.
- I have yet to find a developed market branded furniture co that trades below .7x sales. Which would be $27/sh for NTZ. Hidden asset in the NTZ China JV which could be worth almost the entire market cap.
For further details see:
Natuzzi: Very Cheap Business That Is Inflecting And Has Significant Upside