Grigeo AB (GRG1L;Nasdaq Vilnius)

Solid paper and wood industry company in Lithuania at a 20% depressed valuation due to recent environmental scandal with a 5% dividend yield.

MCap 76M

PE 5.7

PBv 1

PS 0.5

DY 5%

ROE 19%

Yearly stock trading volume of 3% making it an overlooked stock.

Established in 1923, but origin story dates back to the 19th century, when in 1823, paper was produced in the Kučkuriškiai paper factory for the first time in Lithuania.

Listed on NASDAQ Vilnius since 1994.

Grigeo, AB is the only paper and wood industry company group in Lithuania and one of the largest in the Baltic countries. The Group includes the following companies: Grigeo, AB, Grigeo Packaging, UAB, Grigeo Klaipėda, AB, Grigeo Baltwood, UAB, Grigeo Recycling, UAB and Mena Pak, AT.

Business processes cover almost the entire processing cycle of wood and paper components – from the tree up to the final product.

Major product classes: hygienic paper, container board, honeycomb paper core, corrugated cardboard and packaging, hardboard.

A number of awards in the Lithuanian market and the markets of other countries including multiple product of the year nominations.

Recent environmental damage scandal caused by the discharge of sewage into the channel which opens into the Curonian Lagoon.

Employees 800.

Information about shareholders, who own 5% or more of issuer’s capital: UAB “Ginvildos investicija” at 43.5%, Irena Ona Mišeikienė 13.07%.

Company pays a yearly uninterrupted dividend for multiple years.

Financials and other info: https://www.grigeo.lt/en/for-investors/about-this-section

Long Grigeo AB as of 01/21/2020

Purchase price: 1,195 Eu

Published by

Investment Runner

Investing without borders. Absolute return. We prefer smaller. We prefer cheaper. We prefer less liquid and overlooked. Writing about stocks we are buying for a diversified deep value portfolio. These types of stocks tend to be very volatile and can go bankrupt. They are not well suited for a concentrated portfolios. NOT a deep dive extensive write-ups. Some numbers can be rough approximations and intended to be used as blunt valuation guideposts. We do not care about decimal points. This is not investment advise. Do your own research.

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