Lotus has been a very good company
positive:
with future revenue growth around 12% and profit margins increasing, the fair value is still high, even with decreasing p/e and using an 8% discount rate, they are still at least 10% undervalued
great balance sheets with low debts/equity - 35%
High increasing demand for their flagship cookie in Asia
building of a new factory in Thailand to follow the increasing demand should help ensure future revenue growth
currently at a discount, having as low a p/e as it has basically has had in the last 5 years
High ROA compared to industry - 11% compared to 3 %
3Y free cash flow cagr of 9.90% is in the top 25% of its sector.
increasing dividend payments
expansion into ice cream products in cooperation with Mondelez
negative:
they are still at a high p/e ratio of 40X, even with this recent discount
A slow down in future revenue growth due to inability to follow increasing demand with increasing production capacity could lead to a lower p/e balance in the future
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