Wincanton offers equity holders a mixture of growth and returns well in excess of the prospects implied by its discounted valuation. We forecast three-year 3.0% operating profit growth and 8.6% EPS growth, strong cash generation, a 3.5% yield and low leverage at 0.5x net debt to EBITDA. The fact that, despite its strong outlook, the stock is trading at a 25% discount to its peers is a reflection of its large pension deficit and the fact that investor sentiment is yet to fully recover after it
25 Jan 2017
Motoring ahead
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Motoring ahead
Wincanton plc (WIN:LON) | 600 6 0.2% | Mkt Cap: 747.9m
- Published:
25 Jan 2017 -
Author:
Jamie Aitkenhead -
Pages:
13
Wincanton offers equity holders a mixture of growth and returns well in excess of the prospects implied by its discounted valuation. We forecast three-year 3.0% operating profit growth and 8.6% EPS growth, strong cash generation, a 3.5% yield and low leverage at 0.5x net debt to EBITDA. The fact that, despite its strong outlook, the stock is trading at a 25% discount to its peers is a reflection of its large pension deficit and the fact that investor sentiment is yet to fully recover after it