Corticeira Amorim S.G.P.S (ENXTLS:COR) - Share price, News & Analysis

COR fundamental analysis
Snowflake Score
Valuation	2/6
Future Growth	3/6
Past Performance	4/6
Financial Health	5/6
Dividends	4/6

COR Stock Overview

Corticeira Amorim, S.G.P.S., S.A. manufactures and sells cork and cork related products worldwide.

Rewards

Trading at 41.5% below our estimate of its fair value

Earnings are forecast to grow 11.34% per year

Earnings grew by 30.6% over the past year

Risk Analysis

Unstable dividend track record

Corticeira Amorim S.G.P.S Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Corticeira Amorim S.G.P.S
Historical stock prices
Current Share Price	€10.44
52 Week High	€12.70
52 Week Low	€9.18
Beta	0.81
1 Month Change	-0.57%
3 Month Change	5.35%
1 Year Change	-1.32%
3 Year Change	2.55%
5 Year Change	-18.82%
Change since IPO	895.37%

Recent News & Updates

Jun 15

Is Corticeira Amorim S.G.P.S (ELI:COR) Using Too Much Debt?

Legendary fund manager Li Lu (who Charlie Munger backed) once said, 'The biggest investment risk is not the volatility...

May 28

Is It Time To Consider Buying Corticeira Amorim, S.G.P.S., S.A. (ELI:COR)?

Corticeira Amorim, S.G.P.S., S.A. ( ELI:COR ), is not the largest company out there, but it saw a decent share price...

May 10

Corticeira Amorim S.G.P.S (ELI:COR) Will Pay A Larger Dividend Than Last Year At €0.20

Corticeira Amorim, S.G.P.S., S.A. ( ELI:COR ) will increase its dividend on the 13th of May to €0.20. This makes the...

Apr 28

Corticeira Amorim, S.G.P.S., S.A. (ELI:COR) Shares Could Be 45% Below Their Intrinsic Value Estimate

Today we will run through one way of estimating the intrinsic value of Corticeira Amorim, S.G.P.S., S.A. ( ELI:COR ) by...

Shareholder Returns

	COR	PT Packaging	PT Market
7D	1.4%	3.2%	2.8%
1Y	-1.3%	-20.5%	15.4%

Return vs Industry: COR exceeded the Portuguese Packaging industry which returned -20.5% over the past year.

Return vs Market: COR underperformed the Portuguese Market which returned 15.4% over the past year.

Price Volatility

Is COR's price volatile compared to industry and market?
COR volatility
COR Average Weekly Movement	3.1%
Packaging Industry Average Movement	5.1%
Market Average Movement	4.3%
10% most volatile stocks in PT Market	6.0%
10% least volatile stocks in PT Market	3.0%

Stable Share Price: COR is less volatile than 75% of Portuguese stocks over the past 3 months, typically moving +/- 3% a week.

Volatility Over Time: COR's weekly volatility (3%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1870	4,642	Antonio de Amorim	https://www.amorim.com/en

Corticeira Amorim, S.G.P.S., S.A. manufactures and sells cork and cork related products worldwide. The company operates through Raw Materials, Cork Stoppers, Floor and Wall Coverings, Composite Cork, and Insulation Cork segments. It offers cork raw materials; cork stoppers for sparkling wine, spirit, beer, and cider industries; and cork wall and floor coverings.

Corticeira Amorim S.G.P.S Fundamentals Summary

How do Corticeira Amorim S.G.P.S's earnings and revenue compare to its market cap?
COR fundamental statistics
Market Cap	€1.39b
Earnings (TTM)	€78.89m
Revenue (TTM)	€901.78m

17.6x

P/E Ratio

1.5x

P/S Ratio

Is COR overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
COR income statement (TTM)
Revenue	€901.78m
Cost of Revenue	€457.51m
Gross Profit	€444.27m
Other Expenses	€365.38m
Earnings	€78.89m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	0.59
Gross Margin	49.27%
Net Profit Margin	8.75%
Debt/Equity Ratio	20.4%

How did COR perform over the long term?

See historical performance and comparison

Dividends

3.8%

Current Dividend Yield

34%

Payout Ratio

We’ve recently updated our valuation analysis.

Valuation

Is COR undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

2/6

Valuation Score 2/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for COR?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for COR. This is calculated by dividing COR's market cap by their current preferred multiple.
What is COR's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	€1.39b

COR key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	1.7x
Enterprise Value/EBITDA	10.5x
PEG Ratio	1.6x

Price to Earnings Ratio vs Peers

How does COR's PE Ratio compare to its peers?

COR PE Ratio vs Peers

The above table shows the PE ratio for COR vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	11.6x

Forward PE

Price-To-Earnings vs Peers: COR is expensive based on its Price-To-Earnings Ratio (17.6x) compared to the peer average (11.6x).

Price to Earnings Ratio vs Industry

How does COR's PE Ratio compare vs other companies in the Packaging Industry?

Price-To-Earnings vs Industry: COR is expensive based on its Price-To-Earnings Ratio (17.6x) compared to the European Packaging industry average (17.3x)

Price to Earnings Ratio vs Fair Ratio

What is COR's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

COR PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	17.6x
Fair PE Ratio	17x

Price-To-Earnings vs Fair Ratio: COR is expensive based on its Price-To-Earnings Ratio (17.6x) compared to the estimated Fair Price-To-Earnings Ratio (17x).

Share Price vs Fair Value

What is the Fair Price of COR when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: COR (€10.44) is trading below our estimate of fair value (€17.84)

Significantly Below Fair Value: COR is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: COR is poor value based on its PEG Ratio (1.6x)

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Future Growth

How is Corticeira Amorim S.G.P.S forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

Future Growth Score

3/6

Future Growth Score 3/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

11.3%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: COR's forecast earnings growth (11.3% per year) is above the savings rate (1.2%).

Earnings vs Market: COR's earnings (11.3% per year) are forecast to grow faster than the Portuguese market (8.2% per year).

High Growth Earnings: COR's earnings are forecast to grow, but not significantly.

Revenue vs Market: COR's revenue (5% per year) is forecast to grow faster than the Portuguese market (4.6% per year).

High Growth Revenue: COR's revenue (5% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: COR's Return on Equity is forecast to be low in 3 years time (14.7%).

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Past Performance

How has Corticeira Amorim S.G.P.S performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-6.8%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: COR has high quality earnings.

Growing Profit Margin: COR's current net profit margins (8.7%) are higher than last year (8.2%).

Past Earnings Growth Analysis

Earnings Trend: COR's earnings have declined by 6.8% per year over the past 5 years.

Accelerating Growth: COR's earnings growth over the past year (30.6%) exceeds its 5-year average (-6.8% per year).

Earnings vs Industry: COR earnings growth over the past year (30.6%) exceeded the Packaging industry 20%.

Return on Equity

High ROE: COR's Return on Equity (12.8%) is considered low.

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Financial Health

How is Corticeira Amorim S.G.P.S's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: COR's short term assets (€778.8M) exceed its short term liabilities (€330.6M).

Long Term Liabilities: COR's short term assets (€778.8M) exceed its long term liabilities (€178.8M).

Debt to Equity History and Analysis

Debt Level: COR's net debt to equity ratio (6.6%) is considered satisfactory.

Reducing Debt: COR's debt to equity ratio has increased from 14.6% to 20.4% over the past 5 years.

Debt Coverage: COR's debt is well covered by operating cash flow (98.4%).

Interest Coverage: COR's interest payments on its debt are well covered by EBIT (66x coverage).

Balance Sheet

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Dividend

What is Corticeira Amorim S.G.P.S current dividend yield, its reliability and sustainability?

Dividend Score

4/6

Dividend Score 4/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

3.83%

Current Dividend Yield

Dividend Yield vs Market

Notable Dividend: COR's dividend (3.83%) is higher than the bottom 25% of dividend payers in the Portuguese market (3.8%).

High Dividend: COR's dividend (3.83%) is low compared to the top 25% of dividend payers in the Portuguese market (5.44%).

Stability and Growth of Payments

Stable Dividend: COR's dividend payments have been volatile in the past 10 years.

Growing Dividend: COR's dividend payments have increased over the past 10 years.

Earnings Payout to Shareholders

Earnings Coverage: With its reasonably low payout ratio (33.7%), COR's dividend payments are well covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: With its reasonable cash payout ratio (58.1%), COR's dividend payments are covered by cash flows.

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Management

How experienced are the management team and are they aligned to shareholders interests?

9.9yrs

Average board tenure

CEO

Antonio de Amorim (53 yo)

21.25yrs

Tenure

€239,809

Compensation

Mr. Antonio Rios De Amorim has been Executive Chairman and Chief Executive Officer of Corticeira Amorim SGPS SA since March 31, 2001 and serves as its Director since March 29, 1990. Mr. De Amorim serves as...

CEO Compensation Analysis

Compensation vs Market: Antonio's total compensation ($USD252.96K) is below average for companies of similar size in the Portuguese market ($USD988.51K).

Compensation vs Earnings: Antonio's compensation has been consistent with company performance over the past year.

Board Members

Experienced Board: COR's board of directors are considered experienced (9.9 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/26 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/12/31