You are here: Home - Investing - Experienced Investor - News -

Stock of the week: Smurfit Kappa

0
Written by: YourMoney.com
13/11/2017
Helal Miah, investment research analyst at The Share Centre, picks paper packaging company Smurfit Kappa as stock of the week.

Smurfit Kappa engages in the manufacturing, distribution and selling of containerboard, corrugated containers and other paper-based packaging products, such as solid board, graphic board and bag-in-box.

The company, which has 370 production sites across 34 countries, is a relatively recent entrant to the FTSE 100. Its success however, is unsurprising given that companies involved in the packaging business have generally done well of late as the rise of online shopping combined with consumer confidence levels have kept up to support the demand for packaged goods.

The latest trading update showed year-to-date revenues rising by 4% to €6.4bn helped along by continued volume growth in Europe and the Americas, as well as by recovering box prices. Investors should note that the company is diversifying its geographical exposure through further acquisitions and the integration of these businesses seems to be progressing well. Indeed, Smurfit is the largest corrugated packing producer in Europe and the only pan-regional player in Latin America.

The group’s overall business model is relatively defensive and it pays a reasonable dividend yield of around 3% which should prove attractive to income seekers. The demand environment seems to be very supportive and the group will hope to benefit from online shoppers in the run up to Christmas.

As a result, we recommend Smurfit Kappa as a ‘buy’ for investors seeking a balanced return, who are willing to accept a medium level of risk.

There are 0 Comment(s)

If you wish to comment without signing in, click your cursor in the top box and tick the 'Sign in as a guest' box at the bottom.

The savings accounts paying the most interest

If one of your jobs this month is to get your finances in order, moving your savings to a higher paying deal i...

Everything you need to know about being furloughed

Few people had heard of ‘furlough’ before March 2020, but the coronavirus pandemic thrust the idea of bein...

Coronavirus and your finances: what help can you get in the second lockdown?

News and updates on everything to do with coronavirus and your personal finances.

What will happen if rates change

How your finances will be impacted by a rise in interest rates.

Regular Savings Calculator

Small regular contributions can build up nicely over time.

Online Savings Calculator

Work out how your online savings can build over time.

Having a baby and your finances: seven top tips

We’re guessing the Duchess of Cambridge won’t be fretting about maternity pay or whether she’ll still be...

Protecting family wealth: 10 tips for cutting inheritance tax

Inheritance tax - sometimes known as 'death tax' - can cause even more heartache for bereaved families. But th...

Travel insurance: Five tips to ensure a successful claim

Ahead of your summer holiday, it’s important to make sure you have the right level of travel cover or you co...

Money Tips of the Week

Read previous post:
mortgage lending front doors
BLOG: Why do we have to haggle to get the right price?

When buying goods and services, shoppers want clear and transparent pricing. Although I managed to get a good price for...

Close