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Added to YB: 2023-12-18

Pitch date: 2023-12-18

AOJ-B.CO [bullish]

Brødrene A & O Johansen A/S

+44.28%

current return

Author Info

No bio for this author

Company Info

Brødrene A & O Johansen A/S, together with its subsidiaries, engages in the sale and distribution of technical installation materials and tools in Denmark, Sweden, and Norway.

Market Cap

DKK 2.1B

Pitch Price

DKK 63.69

Price Target

N/A

Dividend

4.90%

EV/EBITDA

10.56

P/E

14.22

EV/Sales

0.65

Sector

Trading Companies and Distributors

Category

special_situation

Show full summary:
Buy a market leader at approx. 8-9x depressed net earnings (40-50% global peer discount) & 6-7% yearly dividend

AOJ: Danish B2B/B2C plumbing leader at 7-8x depressed EBIT, 6-7% div. RE worth 50%+ of $280M mkt cap. Tech like automated warehouses/unmanned stores drive retention. Entering upcycle at peak share with no major capex. 4th-gen family-run, CEO shareholder friendly. Undervalued on low float, new to investors. Margin upside seen. 84yo CEO moved to US, no heir, so buyout potential. Solid risk/reward on market position, tech, & sale optionality amid industry upturn & macro.

Read full article (3 min)