Ulker Biskuvi Sanayi (ULKER TI) - Valuation is too attractive to ignore: Maintain Buy
Ulker offers an attractive re-rating story with its strong fundamentals and defensive business structure. The parent Yildiz Holding already finalized its loan restructuring and is in a process of deleveraging though asset sales, which should lead to re-rating of its group stocks. Ulker’s EV is now almost equal to that from 4 years ago, when the company was generating a third of its current 4Q trailing EBITDA.
Compared to its international peers, Ulker trades at 52% discount on 2019E EV/EBITDA of 7.0x and a 57% discount on 2019E P/E of 9.6x. We now include peer multiple valuation, in addition to our DCF valuation, to arrive at our TP and increase our 12M TP to TRY26.10 from TRY21. We reiterate BUY on Ulker for its compelling valuations.
Ulker Biskuvi Sanayi is a manufacturer and marketer of biscuit, chocolate coated biscuit, wafer, cake and chocolate. Co.'s brands include Potibor, Cizi, Krispi, Haylayf, Mavi YePil, HanYmeller, Bebe BiskUvisi, Biskrem, Krim Kraker, Probis, Cokoprens, As Kraker, Bathak, Ykram, Canpare, Rondo, Altinbasak, Kat Tat, Halley, Kat Kat Tat, Cubuk Kraker, Alpella Ring, Hasat, Bolero, Saklykoy, Dore and Haylayf.
TEB Investment equity research analysts and strategist team consists of 8 analysts with an average finance sector experience of 15 years and special focus on international investors.
With our 6 equity research analysts we cover 93 companies across 21 sectors, reflecting 80% of the total market capitalization of all BIST companies and 86% of the BIST100 companies. Our strategy team provides in depth top-down and bottom-up market views with insight on FX and bond markets by publishing sectoral and strategic reports both in English and Turkish.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.