Disclaimer: This isn’t funding recommendation. PLEASE DO YOUR OWN RESEARCH !!!
As prior to now, because of the unhealthy WordPress editor, I’ll publish a abstract right here and connect the total write-up as PDF.
After teasing a brand new place within the Nabaltec “Publish Mortem”, I proudly current the following (hopefully) tremendous boring firm for my boring portfolio.
SAMSE SA is a French firm that distributes constructing supplies to “skilled” prospects like contractors, craftsmen and so forth. It additionally has a smaller “Direct to shopper” DYI retailer section, which represents round 20% of gross sales. Samse is energetic solely in France and No. 2 after Saint Gobain, which, nevertheless is way larger even solely on this particular sector (2000 shops vs. 350).
Right here is an summary of related “KPIs” at a share worth of 190 EUR (time of writing):
PDF file with detailed write-up:
Professional’s and Con’s
What do I like:
- Household owned/managed
- Exceptionally excessive worker possession
- Conservative monetary profile and enterprise mannequin
- Countercyclical M&A
- Decentralized group
- Excellent firm tradition
- enterprise that I type of perceive (distribution)
- not enticing at first sight
- potential “delicate catalyst” by means of acquisition in robust instances
- cheap valuation
Dangers
- Nonetheless Leverage on Holdco stage
- possibly over incomes in 2021 and 2022
- Cycle in constructing supplies would possibly nonetheless worsen
- low free float
- provides to my sector publicity (Thermador, Sto, Photo voltaic)
- For some motive, they’ve discontinued English experiences from 2018 onwards
Abstract:
SAMSE appears to be a kind of prime quality “hidden Champion” corporations that I’m at all times in search of. The enterprise is extraordinarily boring and topic to financial cycles. Then again, the corporate appears to be very effectively managed and so they appear to have the ability to use the cycles to get out stronger from the lows than they entered.
I made a decision to allocate a 3% place into SAMSE at a median worth of 190 EUR per share, funded primarily by the sale of the Nabaltec place. The three% displays my present publicity to the sector.
Truthfully, I don’t anticipate an ideal and fast run up of the share worth. I really hope that the share worth does little or no and that I can add if fundamentals slowly get higher over time like within the Schaffner and Meier Tobler case.
Sources:
An enormous thanks particularly to Jeremy from “French Hidden Champions” and Philippe Luchesi. Each guys are price following if you’re concerned about high quality French shares.
Philippe on SAMSE:
Jeremy on SAMSE:
https://frenchhiddenchampions.substack.com/p/sfaf-analyst-meeting-report-samse?s=w
A current interview with the CEO:
