Professional
Added to YB: 2024-07-31
Pitch date: 2024-07-24
SXP.TO [bullish]
Supremex Inc.
+9.62%
current return
Author Info
Alluvial Capital is an investment manager with a focus on overlooked and obscure securities around the world. Sign up for the newsletter.
Company Info
Supremex Inc. manufactures and markets envelopes, and paper-based packaging solutions and specialty products for corporations, direct mailers, resellers, government entities, small and medium sized enterprises, and solution providers in Canada and the United States.
Market Cap
CAD 90.6M
Pitch Price
CAD 3.21
Price Target
N/A
Dividend
5.42%
EV/EBITDA
4.42
P/E
-7.84
EV/Sales
0.63
Sector
Paper and Forest Products
Category
value
Alluvial Capital Management Portfolio Holding: Supremex Inc.
SXP.TO: Supremex Q1 EPS up to $0.14. Trading at 7x trough earnings, mid-teens FCF yield. Management optimistic on inventory cycle recovery, but cautions against quick return to 2022 peak. Aggressive buybacks: 0.4-0.6% of shares monthly (144,300 in May, 98,100 in June). Potential upside from demand improvement.
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