Vopak: Strong Cash Flows And Dividend Make Stock Appealing Again

2025-02-25 10:30:00 ET

Summary

• Vopak's 2024 strong free cash flow and lower share price make it an attractive investment despite a slight revenue and EBIT decline.
• The company’s 2025 guidance suggests minimal growth, but a share buyback program could boost per-share results.
• Vopak's capital markets day in March may reveal long-term growth plans, potentially enhancing future EBITDA.
• Considering writing an out-of-the-money put option for an effective purchase price of 34.75 EUR, yielding over 10% free cash flow.

Introduction

Sometimes the pendulum on the financial market swings too far in either direction. Back in 2022, when Vopak’s ( VOPKF ) share price dropped into the low-20 EUR zone, the company represented an excellent investment opportunity that was too good to pass up. The share price doubled in the subsequent two years, resulting in a rating downgrade after the company published its H1 2024 results. The Dutch infrastructure and storage company has now released its full-year results and as the share price is now trading approximately 10% lower than last summer, I wanted to check if this perhaps represents an opportunity to get back in....

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