CGRA reached a nice valuation. It generated an average of 36 million in cash per year in 2009/2010 and invested just 15 millions (investment for expansion included). So FCF is about 20 millions, a yield of 7%.
Grazziotin also have nearly 100 millions in reforestation, lands, buildings and benefactories, more 70 millions in cash. And receivables.
P/E: 8.40
P/BV: 1.0
Yield: 7.0%
Monday, July 25, 2011
CGRA4 - Grazziotin
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2 comments:
There is a lot of hidden value inside Graziotin's balance sheet.
Market cap: 284M
Net cash: 67M
Net Market cap: 217M
If they have forest assets that are worth 100M, so the core business is being negociated by Mr.Market for only 117M?
FCF = 20M
Market = 117M
yield = 117%
I remenber Graziotin bought a lot of stocks during the 2008/09 market meltdown.
Do they still own it?
They revaluated the fixed assets in 2009. That increased the assets value in the balance sheet by 136M;
They don't seem to own stocks for investment anymore.
The forest business didn't generate any revenues in 2010.
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