Mondi PLC MNDI short MNDI Stock Overview
Mondi plc engages in the manufacture and sale of packaging and paper products in Africa, Western Europe, Emerging Europe, North America, South America, Asia, and Australia.
I am currently Short selling this stock because of several reasons though they are also some good facts about the company. As TradeFollower my technical analysis and trading system logic forced me to rule my emotions,and that was a very good decision as you can see. Nevertheless this is my personal opinion and the following technical and fundamental analysis is just educatable. Always use stop and proper money and risk management.
REWARDS
Price-To-Earnings ratio (6x) is below the UK market (14.3x)
Earnings grew by 118.4% over the past year
Trading at good value compared to peers and industry
RISK ANALYSIS
Earnings are forecast to decline by an average of 18.7% per year for the next 3 years
Unstable dividend track record
Large one-off items impacting financial results
Price-To-Earnings vs Peers: MNDI is good value based on its Price-To-Earnings Ratio (6x) compared to the peer average (15.2x).
Price to Earnings Ratio vs Industry
How does MNDI's PE Ratio compare vs other companies in the European Forestry Industry?
Price-To-Earnings vs Industry: MNDI is good value based on its Price-To-Earnings Ratio (6x) compared to the European Forestry industry average (6.7x)
Price to Earnings Ratio vs Fair Ratio
What is MNDI'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.
Price-To-Earnings vs Fair Ratio: MNDI is good value based on its Price-To-Earnings Ratio (6x) compared to the estimated Fair Price-To-Earnings Ratio (7x).
Share Price vs Fair Value
What is the Fair Price of MNDI when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.
Below Fair Value: MNDI (£12.43) is trading above our estimate of fair value (£8.2)
Significantly Below Fair Value: MNDI is trading above our estimate of fair value.
What is the analyst 12-month forecast and do we have any statistical confidence in the consensus price target?
Analyst Forecast: Target price is less than 20% higher than the current share price.
