Capitalcube gives Mondi Plc a score of 72.
Our analysis is based on comparing Mondi Plc with the following peers – James Cropper plc, DS Smith Plc, Ahlstrom-Munksjo Oyj and Cham Paper Group Holding AG (CRPR-GB, SMDS-GB, AM1-FI and CPGN-CH).
Mondi Plc has a fundamental score of 72 and has a relative valuation of UNDERVALUED.
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- Compared to peers, relative underperformance over the last year is in contrast with the more recent outperformance.
- It trades at a lower Price/Book multiple (2.03) than its peer median (2.69).
- We classify MNDI-GB as Harvesting because of the market’s relatively low growth expectations despite its relatively high returns.
- MNDI-GB has relatively high profit margins while operating with median asset turns.
- Changes in annual revenues (relative to peers) are better than the change in its earnings (relative to peers), implying the company is focused more on revenues.
- MNDI-GB‘s return on assets currently and over the past five years suggest that its relatively high operating returns are sustainable.
- The company’s relatively high gross and pre-tax margins suggest a differentiated product portfolio and tight control on operating costs relative to peers.
- MNDI-GB‘s revenues have grown more slowly than the peer median over the last few years, which combined with the stock price’s relatively low P/E ratio suggests substandard growth expectations relative to peers.
- The company’s level of capital investment seems appropriate to support the company’s growth.
- MNDI-GB has the financial and operating capacity to borrow quickly.
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Leverage & Liquidity
MNDI-GB has the financial and operating capacity to borrow quickly.
- With debt at a relatively low 12.19% of its enterprise value compared to an overall benchmark of 25% (Note: The peer median is currently 12.33%), and a well-cushioned interest coverage level of 14.12x, MNDI-GB can probably borrow quickly. We classify the company as Quick & Able in terms of its capacity to raise additional debt.
- All 4 peers for the company have an outstanding debt balance.
MNDI-GB has maintained its Quick & Able profile from the prior year-end.
- MNDI-GB‘s interest coverage is its highest over the last four years and compares to a low of 4.65x in 2012.
- The increase in its interest coverage to 14.12x from 11.21x (in 2015) was also accompanied by an increase in its peer median during this period to 9.96x from 7.52x.
- MNDI-GB‘s debt-EV is its lowest over the last four years and compares to a high of 30.97% in 2012.
- The decrease in its debt-EV to 12.19% from 14.86% (in 2015) was also accompanied by a decrease in its peer median during this period to 12.33% from 22.05%.
- Relative to peers, debt-EV rose 7.04 percentage points.
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Key Liquidity Items
|Company||Debt/Enterprise Value (%)||Current Ratio||Interest Coverage (x)||Cash Flow To Total Debt (%)|
|James Cropper plc||6.45||2.06||9.96||77.44|
|DS Smith Plc||24.48||1.01||8.15||26.25|
|Cham Paper Group Holding AG||12.33||1.96||30.5||51.18|
|Best In Class||6.45||2.06||30.5||77.44|
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Mondi Plc manufactures packaging and business paper. Its products include kraft paper, industrial bags, containerboard, corrugated packaging, films and laminates-printed and unprinted, pre-made consumer bags, extrusion coated materials, release liner, office paper and professional printing products. Mondi was founded on November 4, 2007 and is headquartered in Surrey, United Kingdom.
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