It's been a tough year for Multi-Color (LABL)
("MCC"), as the shares of this leading label-maker have been trending
steadily lower (down 20%) as the company has come up short on organic
growth and margins. The fiscal fourth quarter was a nice reversal of the
financial trend, though, and the shares responded strongly to the
better results and modestly bullish guidance for the next year. While
I
expect Multi-Color to continue to post relatively turbulent
quarter-to-quarter performance, the shares remain undervalued if the
company can manage to continue to generate low single-digit organic
growth supplemented with small tuck-ins and generate ongoing margin
improvements sufficient to get FCF margins into the high single-digits.
Continue here:
A Good Quarter Makes The Value Call On Multi-Color A Little Easier
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