Mondi (MNDI.L)
Materials · LSE · UK
Fundamentals
Valuation and ratings
Mondi trades at £7.38, close to the £7.89 our discounted cash flow model puts on the business. On this measure the market and the model broadly agree, so the interesting question is which of them is wrong.
Our moat model scores it 35 out of 100, which is little in the way of a moat. A moat is a structural reason competitors cannot take the profits away, and it matters more to a long holding period than any single quarter's numbers do.
It changes hands at 22.1 times earnings. Be careful reading that in isolation: for a cyclical business a low P/E arrives at the top of the cycle, when profits are peaking and about to fall, which is exactly when the shares look cheapest and are not.
About Mondi
Mondi plc, together with its subsidiaries, engages in the manufacture and sale of packaging and paper solutions in Africa, Western Europe, Emerging Europe, North America, South America, Asia, and Australia. The company operates through Corrugated Packaging, and Flexible Packaging segments. The Corrugated Packaging segment provides virgin and recycled containerboards for fresh fruit packaging and heavy and fragile goods transport packaging applications; and corrugated solutions, such as corrugated boxes and packaging products. The Flexible Packaging segment offers sack kraft paper, paper bags, specialty kraft paper, consumer flexibles, and functional paper and films. The Uncoated Fine Paper segment provides uncoated fine paper, including home, office, converting, and professional printing papers; and market pulp. The company was incorporated in 2007 and is based in Weybridge, the United Kingdom.
MNDI.L passes 5 of our 30 screens today
Each screen prints the exact criteria it used, and the circumstances in which it is wrong.
Common questions
Is Mondi (MNDI.L) undervalued?
Against our discounted cash flow estimate of £7.89, MNDI.L at £7.38 is 7% below fair value. That is one model's answer, not a recommendation, and most of a DCF's output sits in a terminal value nobody can forecast.
What is MNDI.L's P/E ratio?
MNDI.L trades at 22.1 times earnings. A low P/E is not automatically cheap: on a cyclical company it is usually a warning that earnings are at a peak.
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Data from company filings, exchange quotes and SEC EDGAR 13F disclosures. Quotes are delayed. Metrics we do not have are left out rather than estimated. Educational information, not financial advice.