Stock analysis Tomra Systems: With deposit to success?♻️
Tomra Systems is a hidden champion that you have probably come across in your everyday life without realizing it. The deposit machines in Germany are largely made by Tomra. But the company offers much more, as you can see in my brief analysis.
What does Tomra Systems do?
Tomra Systems is a Norwegian manufacturer of reverse vending machines as well as sorting systems that optimize the recovery of scarce resources and minimize waste in the food, recycling, mining and other industries. It is divided into three distinct business units: Food | Receycling | Mining The company was founded in 1972 and is listed on the Oslo Stock Exchange.
Tomra is more than just deposit bottles. Its sorting systems are used in mining and ensure that a mine's energy consumption can be reduced by up to 15%. In Q3 2021, sales in this area increased by 21%. Rising raw material prices are seen as a sales driver here, as valuable resources can be saved through Tomra.
Tomra in figures:
Market capitalization: €7.871 billion
P/E ratio 22e: 6.73x
P/E ratio 22e: 65.5x
Dividend yield: 0.78
EBITDA margin 22e: 21.6%
Net margin 22e: 10.1%
Opportunities:
Tomra is benefiting immensely from society's new environmental awareness and the trend towards ESG in investment.
Globally, not many countries are yet adopting a comprehensive deposit system. This is now changing. In addition to the introduction in Latvia and Romania, Germany and the Netherlands are tightening their deposit systems.
The Mining & Food sectors are benefiting from the easing of Covid restrictions.
Rising raw material prices and shortages are leading to increased recycling demand, from which Tomra Systems is benefiting.
Risks:
With a P/E ratio of over 65 and a KUV of 6.73, Tomra Systems is very highly valued. The potential for correction if expectations are missed is high.
Tomra is denominated in Norwegian kroner, a currency that is heavily dependent on the oil price. It is very volatile, especially in times of crisis.
Like many industrial companies, Tomra suffers from supply bottlenecks.
My conclusion:
Tomra Systems is one of my favorite stocks, which is why the company is also represented in the Aktienimpuls Zukunftschancen Index. The Norwegians have managed to act as leaders in a market niche, which will have a future-bearing role due to the higher environmental awareness. Therefore, for me it means (if possible) to use technical price weaknesses for re-buying.
A small investment idea for you:
Roughly calculate the amount you earn in your everyday life with returnable bottles. Probably this amount will not be very high, so double it according to your discretion and invest the money in Tomra Systems via a savings plan. In this way, you will literally earn your money with returnable bottles.
