Tuesday, June 17, 2014

Seeking Alpha: Multi-Color Light On Growth, But Stronger On Margins

I suppose a cynic could say that "it's always something" when it comes to Multi-Color (LABL), as this label solutions company has found it challenging to generate attractive organic revenue growth and margin leverage in the same period. Price competition certainly isn't helping, as the company continues to see significant competition in lower value-added label categories. Even so, the company continues to churn out a pretty meaningful free cash flow stream and scale-derived margin leverage and long-term deleveraging suggest more FCF generation down the road. Multi-Color doesn't appear to be priced as a tremendous bargain today, but relatively modest outperformance on gross margin could still lead to meaningful surprises.

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Multi-Color Light On Growth, But Stronger On Margins

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