Added to YB: 2024-05-20
Pitch date: 2024-05-19
STG.CO [bullish]
Scandinavian Tobacco Group A/S
+1.09%
current return
Author Info
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Company Info
Scandinavian Tobacco Group A/S manufactures and sells cigars and pipe tobacco in the United States, Europe, and internationally.
Market Cap
DKK 8.7B
Pitch Price
DKK 91.50
Price Target
N/A
Dividend
7.76%
EV/EBITDA
6.95
P/E
8.92
EV/Sales
1.57
Sector
Tobacco
Category
value
Scandinavian Tobacco Group: What Is Normal?
STG.CO: Mixed Q1 - Europe Branded struggles with aggressive pricing, segment EBITDA down 41% YoY. Next-gen oral now 5% of sales but weighing on profits near-term. NA Branded hit by Canada plain packaging but US pricing offsets volume. Online+Retail shines: +9% organic, margins dip on mix. ZYN shortage may last months. Valuation highly attractive at 8x low-end '24 adj EPS guidance despite near-term uncertainty. Positioned for significant multiple compression from modest execution + buybacks.
Read full article (8 min)