Professional
Added to YB: 2024-07-31
Pitch date: 2024-07-24
SXP.TO [bullish]
Supremex Inc.
+19.06%
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 in Canada and the United States.
Market Cap
CAD 88.6M
Pitch Price
CAD 3.12
Price Target
N/A
Dividend
5.49%
EV/EBITDA
6.32
P/E
8.18
EV/Sales
0.69
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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