Investor Presentaiton
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Source: GBM Research
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October 12, 2021
ATTRACTIVE VALUATION
LAMOSA: INVESTMENT THESIS
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Trading at a -40% discount to its peers' 2022e EV/EBITDA and our 7.5x target multiple.
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Trading at -35% discount to its historical EV/EBITDA.
EV/EBITDA Multiples
Trading at a 50% discount to the lower range (8x EV/EBITDA) of our sample of M&As. For further details, please refer to slide 65.
2021e and 2022e OFCF yields of 13.8 and 14%, respectively.
Saudi
Ceramic
2021e
11.5×
SCG
Ceramics
10.5×
2022e
11.3x
10.0x
Monalisa
Group
12.1x
9.3x
Portobello
11.6x
N/A
Dynasty
Ceramics
9.5x
9.0x
RAK
Ceramics
7.8x
7.2x
Mohawk
Tarkett
Nichiha Corp.
CERAMIC
LAMOSA
Average
7.2x
6.6x
7.1x
7.2x
5.8x
4.6x
8.6x
5.6x
5.2x
5.6x
4.2x
7.4x
Historical EV/EBITDA
Despite the stock's low to zero liquidity on the market, the discount at which LAMOSA is trading to its peer and industry valuations seems overstated, particularly if we consider the company boasts an impeccable
operating track record and value creation both organically and inorganically, while it also pays a stable and rising dividend and maintains an operation with returns above the cost of capital.
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ما له سه
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EV/EBITDA
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LAMOSA/CERAMIC: THE ROAD TO GROWTH IS PAVED WITH TILES. | 36
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