Bullboard - Stock Discussion Forum Supremex Inc T.SXP

Alternate Symbol(s): SUMXF

Supremex Inc. is a Canada-based company, which manufactures and markets envelopes and provides paper-based packaging solutions designed to the specifications of national and multinational corporations, direct mailers, resellers, government entities, small-medium enterprises (SMEs) and solutions providers. The Company operates through two segments: the manufacturing and sale of envelopes and the... see more

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TSX:SXP - Post Discussion

Supremex Inc > 90% Upside

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Post by DanielDarden on Jul 08, 2023 10:54am

90% Upside

“At a current valuation of just 4.2x EBITDA versus packaging peer group’s average of 7.1x, SXP’s shares represent an excellent risk-reward proposition given its strong free cash flow yield which will support shareholder returns across multiple avenues including paying down debt, share buyback, dividend growth and M&A,” ( Beacon Securities)

My Take: New analysts are coming onboard and recognizing the hidden value now. An initial $12 target is astounding but obviously this analyst too thinks that SXP can continue to pass on higher costs. In this environment most CO’s. cannot. The valuation gap should close as more recognize the value embedded here.

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