Prysmian: Encore Wire Integration Will Boost Cash Flows

(8min)

Summary

  • Prysmian's stock has increased by 60% in the past year, with strong financial performance and the recently closed acquisition of Encore Wire as catalysts.
  • Despite a decrease in revenue and profit, Prysmian's free cash flow remains strong, with a positive outlook for the future.
  • The recent acquisition of Encore Wire will increase Prysmian's net debt but is expected to generate significant EBITDA and synergies, leading to a potential decrease in EV/EBITDA multiple by 2025.
  • Looking for more investing ideas like this one? Get them exclusively at European Small-Cap Ideas. Learn More »
Kraan onder onderhoudsroutine werk door kraanmachinist of technicus, vaste en dienstkraan met preventief onderhoudsschema,Technicus onderhoud het hydraulische systeem en de controlemechanisme van kraanpost.

curraheeshutter/iStock via Getty Images

Introduction

About a year ago, I mentioned in an article I was charmed by Prysmian’s (OTCPK:PRYMY) (OTCPK:PRYMF) financial performance, as the stock was still trading at just 8 times EBITDA. I thought that was pretty low for a

Consider joining European Small-Cap Ideas to gain exclusive access to actionable research on appealing Europe-focused investment opportunities, and to the real-time chat function to discuss ideas with similar-minded investors!

This article was written by

22.6K Followers

The Investment Doctor is a financial writer, highlighting European small-caps with a 5-7 year investment horizon. He strongly believes a portfolio should consist of a mixture of dividend and growth stocks.

He is the leader of the investment group European Small Cap Ideas which offers exclusive access to actionable research on appealing Europe-focused investment opportunities not found elsewhere. The a focus is on high-quality ideas in the small-cap space, with emphasis on capital gains and dividend income for continuous cash flow. Features include: two model portfolios - the European Small Cap Ideas portfolio and the European REIT Portfolio, weekly updates, educational content to learn more about the European investing opportunities, and an active chat room to discuss the latest developments of the portfolio holdings. Learn more.

Analyst’s Disclosure: I/we have no stock, option or similar derivative position in any of the companies mentioned, and no plans to initiate any such positions within the next 72 hours. 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.

I currently have no position in Prysmian but although I'm still interested in the stock, I doubt I will go long in the next 72 hours.

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.

Recommended For You

About PRYMY Stock

SymbolLast Price% Chg
Market Cap
PE
Yield
Rev Growth (YoY)
Short Interest
Prev. Close
Compare to Peers

More on PRYMY

Related Stocks

SymbolLast Price% Chg
PRYMY
--
PRYMF
--