Photo: clone, Instagram / Klabin
Yesterday afternoon, Klabin released its results for the third quarter of 2022, beating market expectations. Find out the details in this special report.
As we’ve already put in a series of reports throughout our coverage, Klabin is a complete paper product. Currently, 42% of its income comes from exporting cellulose mainly to China and the other 58% comes from food packaging products and paperboard, among other products derived from paper.
The company introduced a he won 5.5 billion riyals in the third quarter, an increase of 9% over the same period last year. a operating profit (EBIT) 2.3 billion riyals, with a growth of 20%.
The profit amounted to 2 billion riyals, more than double the third quarter of 2021 and benefited from a better-than-expected financial result due to the downturn in IPCA, an indicator that adjusts a large part of the company’s financial expenses. Relationship net debt Divided by cash generation, it is down and is currently 2.6 times.
With this cash generation, Klabin announced a dividend of R$502 million, or 0.45 per unit. Thus, the company’s dividend income is 8.5%.
In addition to continuing to deliver better than expected results, the company has done so too projectssuch as Puma II, which is in progress and It will increase the production capacity of two dogsThus, revenue will grow, and therefore return to shareholders.
Another factor that makes us very happy at Klabin is the current rating. The company is currently trading at 23 billion riyals in the market, with an operating cash flow of about 10 billion riyals, and a net recurring income of 4 billion riyals. thus, The company is trading at less than 5 times the profit.
In our models, we conservatively estimate that the company could trade at least 32 billion riyals or 30 riyals per share, which is a potential 41% increase over the current screen price.
In my analysis, Klabin is the perfect definition of what equity investments should be, because it is a company with clear competitive advantages, a profitable business in line with global trends, and uses part of the cash generated for growth and the other part to reward shareholders via dividends.
In this way, Klabin is one of the companies that we consider TOP PIX. If you want to know the best companies to invest in, Click here and check out our lifetime series of actions.
Joao AbdouniCNPI Analyst at Inv Publications.
“Entrepreneur. Music enthusiast. Lifelong communicator. General coffee aficionado. Internet scholar.”