The Market Maven - Week 1
Upsales, Grupo Mexico Transportes, Nestle
Upsales 🇸🇪 (STO:UPSALE, EV: 526M kr Last Close: 33.00 kr)
Upsales provides SaaS CRM solutions, and dominates the SMB market within the Nordics. The company has been profitable every year since its founding in 2003 by CEO Daniel Wikberg. There are a number of things to like about Upales: negative working capital, high customer ROI, and a large growth runway. Shares trade for 4x ARR and a 5% FCF yield.
A great writeup by David Diranko (Link).
Grupo Mexico Transportes 🇲🇽 (BMV:GMXT, EV: MX$161B Last Close: MX$32.02)
GMexico is one of two rail operators in Mexico. The company is a beneficiary of near-shoring, with rail having multiple advantages over long haul trucking. Political instability in Mexico has shares trading for 12x earnings, a 40%+ discount to US peers.
Nestle 🇨🇠(SWX:NESN, EV: ₣233B, Last Close: ₣74.90)
Nestle’s portfolio includes some of the worlds best known brands such as Nescafe, Kit Kat, and Milo. The company has struggled in recent years along with other consumer brands and now trades for 5.75% FCF yield. This compares to their 5, 10, and 20 year averages of 3.57%, 3.67%, and 3.94% respectively.
A writeup from Quality Stocks (Link).
A presentation by Nestle’s new CEO (Link).
A podcast on Nestle by Sven Carlin (Link).
Check Out: YearCompass Reflection Booklet
Disclosure: This newsletter does not provide investment advice. Information presented is for informational purposes only and should not be considered a recommendation to buy or sell securities. The author may or may not own the securities discussed.