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DS Smith: Profitable, Growing, And Attractively Priced
Summary
- DS Smith has been consistently profitable, recording positive net income for 19 out of the last 20 years.
- Net income grew at a 6% CAGR over the last 5 years (14% over the last 10 years, and 15% over the last 20 years).
- There are ESG and e-commerce tailwinds - there's nothing quite as environmental as a recycled paper box manufacturer.
- It's a boring company in a boring industry that benefits from the benevolent neglect of regulators.
- It might be better placed than most to withstand adverse macroeconomic shocks.
I'm a PhD student with too much time and too little money. I'm long on all the stocks I recommend. I invest only in publicly-traded equities, I have been doing so since 2020, and I have realised around £12,000 in capital gains every year (just under the threshold for Capital Gains Tax), which I re-invest. I invest in quality stocks; it does not matter so much to me whether a stock is growth or value, as long as it is quality.
Analyst’s Disclosure:I/we have a beneficial long position in the shares of DITHF either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.
Seeking Alpha's Disclosure: Past performance is no guarantee of future results. No recommendation or advice is being given as to whether any investment is suitable for a particular investor. Any views or opinions expressed above may not reflect those of Seeking Alpha as a whole. Seeking Alpha is not a licensed securities dealer, broker or US investment adviser or investment bank. Our analysts are third party authors that include both professional investors and individual investors who may not be licensed or certified by any institute or regulatory body.