Investor Presentaiton
12.0
11.0
10.0
9.0
8.0-
7.0
6.0
5.0
4.0
Jan-05
May-05
Source: GBM Research
Sep-05
Jan-06-
May-06
Sep-06
Jan-07
May-07
Sep-07
Jan-08
•
•
October 12, 2021
ATTRACTIVE VALUATION
EV/EBITDA Multiples
CERAMIC: INVESTMENT THESIS
•
Trading at a -25% discount to its peers' 2022e EV/EBITDA and our 7.5x target multiple.
•
Trading at -25% discount to its historical EV/EBITDA.
Trading at a 30% 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 9.1 and 11.1%, respectively.
Saudi
Ceramic
2021e
11.5×
2022e
11.3x
SCG
Ceramics
10.5×
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
7.1x
7.2x
5.8x
4.6x
8.6x
6.6x
5.6x
5.2x
5.6x
4.2x
7.4x
Historical EV/EBITDA
Despite the stock's low to zero liquidity on the market and the company's complex corporate structure, the discount at which CERAMIC is trading to its peer and industry valuations seems overstated, particularly if
we consider the company's distinctive value proposition around its retail distribution, not only in Mexico but also in the United States, where it has enormous growth potential.
14.0
13.0
May-08
Sep-08
Jan-09
May-09
Sep-09
Jan-10
May-10
Sep-10
Jan-11
May-11
Sep-11
Jan-12
May-12
Sep-12
Jan-13-
EV/EBITDA
May-13
Sep-13
Jan-14
Average
May-14
Sep-14-
Jan-15
May-15
Sep-15
Jan-16
May-16
Sep-16
Jan-17
May-17
Sep-17
Jan-18
May-18
Sep-18-
Jan-19
May-19
Sep-19
Jan-20-
May-20
Sep-20
Jan-21
May-21
LAMOSA/CERAMIC: THE ROAD TO GROWTH IS PAVED WITH TILES. | 50
Sep-21
GBMView entire presentation