2Mo·

After nearly 2 years on the watchlist 👌🏽

$ELO (+2,14 %) is a small-cap dividend-paying company from Norway whose packaging solutions can be found all over Europe. Every time I buy a protein shake or dairy product from any brand, I see the Elopak logo on the side of the packaging. This small-cap company has fascinated me for a very long time, and now it’s mine 😃😃

15.06

Elopak

Acheté x1300 à 3,31 €

4 303,00 €

14 Commentaires

jkb92@jkb92

2Mo

With a market capitalization of €4,303.00, it really is a small-cap stock :)

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Poor Dad@PoorDad

2Mo

@jkb92 On Getquin, their market cap is shown in EUR… actually, it’s 9.4 billion NOK —> ~845 million EUR. I rarely trust the figures on Getquin.

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jkb92@jkb92

2Mo

@PoorDad Oh, I thought from your post that you had bought the whole company ;)

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Poor Dad@PoorDad

2Mo

@jkb92 🤓

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Raketentoni@Raketentoni

2Mo

Hey, there was a report in my Danish newspaper the other day. Management is warning of a price war with India and China. First-quarter revenue fell by 3.8%.
They’re warning of weak consumer spending in Europe and an extremely competitive price war in the juice market. On top of that, the ramp-up of the new major US factory in Little Rock is stuttering.
There’s a reason why it’s gone down. Well, that’s why I’m not invested—I just had it on my watchlist. But I wish you the best of luck with it.

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Poor Dad@PoorDad

2Mo

@Raketentoni I'm aware of that. Nevertheless, I decided to invest because the biggest weakness lies with the retail market itself, not with the company. If this weakness persists, I'm prepared to accept lower prices.

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Raketentoni@Raketentoni

2Mo

@PoorDad It was just a comment 😉 I know you check your investments beforehand.

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Erzwo@FYBSTRD

2Mo

The Q-tax puts the Divi into perspective

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Poor Dad@PoorDad

2Mo

@FYBSTRD But I just need to get the remaining 10% back.

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ZeissJessy@ZeissJessy

2Mo

Why did the market drop 30% in March?

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Poor Dad@PoorDad

2Mo

@ZeissJessy I don't know… just kidding :D The triggers were a profit warning due to the weak consumer market in Europe, and a major shareholder pulling out.

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Kini - Dividend Strategy@investron

2Mo

Congrats!

Out of curiosity I run it through my engine.

It lands in the 🟢 BUY quadrant (Quality 75, Opp 65) , which is rare for a Consumer-sector stock in my screener. The math holds up well:

- P/E of 14.3x, sitting right in the 8-15x sweet spot
- 5.66% trailing yield with a 25.3% cash flow payout.
- FCF covers the dividend 3.95x, so there's plenty of cushion

The thing that really stood out to me was the regulatory angle. The EU PPWR is specifically targeting single-use plastics, and Elopak's fiber-based cartons are positioned to absorb that market share as brands flee plastic. That's a structural tailwind, not a headwind.

That said, the Q1 2026 numbers were a bit softer, and the interim CEO situation adds some near-term uncertainty. But honestly, that's probably why you got a decent entry price after two years of watching.

I am really trying to have an accurate structural risk evaluation unit, does this fit your analysis?
I also calculate some of the numbers from my provider, are they accurate?

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Poor Dad@PoorDad

2Mo

@investron Basically, yes. The company has positioned itself well in Europe over the past years. Elopak is now trying to expand into the U.S. market. They already have a plant in the United States that is fully booked and performing well. Additional facilities are being built to support further expansion there.

Elopak’s dividend policy is tied to earnings. Management is targeting a payout ratio of 50-60% of adjusted profit. As a dividend growth investor, I see this as a great opportunity to participate in the growth of a company while benefiting from increasing dividends over time.

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Kini - Dividend Strategy@investron

2Mo

@PoorDad sounds great!

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