Sunday, June 3, 2018

A Good Quarter Makes The Value Call On Multi-Color A Little Easier

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.

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A Good Quarter Makes The Value Call On Multi-Color A Little Easier

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