Stephen Simpson, CFA
Long only, growth at reasonable price, value, research analyst

Semperit Offers Real Value In Obscurity

(Editors' Note: Semperit AG trades on the Vienna Stock Exchange under the symbol SEM.VI, with ~290K average daily volume).

You might not think there would be all that much to like in an obscure Austrian manufacturer of rubber and plastic products, but Semperit (OTC:SEIGF) (SMPV.VI or SEM.VI) is definitely a case where investors should take a much closer look. Rubber gloves, industrial hoses, and conveyors may not sound like attractive markets, but Semperit has managed to generate double-digit returns on capital and respectable margins on a pretty consistent basis. Semperit shares appear to be at least 10% undervalued on a low-ball EV/EBITDA basis, while a DCF model suggests a fair value over 35% higher than today's...

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