Analysis on GARP with strong economic moats, Moat Investing

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Analysis on GARP with strong economic moats

We are a group of experienced investors that like to dig deeper into stocks to find growth stories at a reasonable price with strong economic moats. We also aim to conduct high-quality analysis by doing deep dive on valuations, key business drivers, risk/reward, and different future scenarios.

GARP with strong economic moats

Equity Bottom-Up

<ul><li>John Menzies plc is a UK-based company not listed in the USA market, and we currently consider it as a great foreign opportunity.</li><li>In 2019, the company delivered an all-time high revenue of £1.32bn (+2% YoY and 2.2x current EV) and EBITDA of £138.7m (10.5% margin).</li><li>In 2020, the company experienced a 60% decline in ground volumes, 50% in fueling, but managed to contain cargo volumes reduction at only 20% and increased revenues in cargo.</li><li>The company bounced back in 1H 2021, Menzies is again profitable, delivering significant profit turnarounds, especially in EMEA and Americas, driven by volume recoveries and greater weight of higher-margin cargo services in the product portfolio.</li><li>Management did not waste the crisis but used it to become a more competitive and leaner organization ready to enjoy the full impact of returning volumes.</li></ul>

John Menzies plc is a UK-based company not listed in the USA market, and we currently consider it as a great foreign opportunity.In 2019, the company delivered an all-time high revenue of £1.32bn (+2% YoY and 2.2x current EV) and EBITDA of £138.7m (10.5% margin).In 2020, the company experienced a 60% decline in ground volumes, 50% in fueling, but managed to contain cargo volumes reduction at only 20% and increased revenues in cargo.The company bounced back in 1H 2021, Menzies is again profitable, delivering significant profit turnarounds, especially in EMEA and Americas, driven by volume recoveries and greater weight of higher-margin cargo services in the product portfolio.Management did not waste the crisis but used it to become a more competitive and leaner organization ready to enjoy the full impact of returning volumes.

<ul><li>John Menzies plc is the holding company of Menzies Aviation, which provides services in more than 30 countries.</li><li>The company represents a great under-the-radar opportunity as the market valuation is being currently affected by the pandemic.</li><li>As the vaccine and treatment advance, the worst should be over in the travel industry as recovery is expected.</li><li>The overall aviation market (passengers and cargo) is on a structural growth trend which is expected to stabilize at around a 4% annual growth rate in the long term.</li><li>The different valuation models converge towards the same price range for the firm which gives us more security in terms of the target price.</li></ul>

John Menzies plc is the holding company of Menzies Aviation, which provides services in more than 30 countries.The company represents a great under-the-radar opportunity as the market valuation is being currently affected by the pandemic.As the vaccine and treatment advance, the worst should be over in the travel industry as recovery is expected.The overall aviation market (passengers and cargo) is on a structural growth trend which is expected to stabilize at around a 4% annual growth rate in the long term.The different valuation models converge towards the same price range for the firm which gives us more security in terms of the target price.

John Menzies: A Multiple Approach On A Foreign Opportunity

United Kingdom

John Menzies PLC provides logistic services. The Company offers ground and cargo handling, fuelling, offline support, and executive services. John Menzies serves customers worldwide.

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John Menzies PLC (MNZS LN)

Menzies: On The Highway To Recovery

John Menzies plc is a UK-based company not listed in the USA market, and we currently consider it as a great foreign opportunity. In 2019, the...

Moat Investing

John Menzies: A Multiple Approach On A Foreign Opportunity

John Menzies plc is the holding company of Menzies Aviation, which provides services in more than 30 countries. The company represents a great...

Moat Investing

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