Yuri Gagarin PLC (4PX; Bulgarian Stock Exchange)

Bulgaria based leading manufacturer of cigarette filters for the tobacco industry trading for less than 5 times last year’s earnings with top line revenue of $74M for a $4M market cap company that can be bought for less than 1/10th of company’s book value.

MCap $3.9M

PE 4.9

PBv 0.09

PS 0.06

DY 0%

ROE 5% (5Y average)

CAGR 5% (5Y average)

Yearly stock trading volume is usually less than 20% making it an overlooked stock.

Yuri Gagarin was established in 1964 as a part of the state-owned tobacco monopoly Bulgartabak, which was one of the largest tobacco companies in Europe in the second half of the 1900s. 

Yuri Gagarin PLC is one of the first joint stock companies listed on the Bulgarian Stock Exchange, whose shares have been traded on the BSE since August 1998. Until October 2006 Yuri Gagarin Plc was an affiliate company and a part of the group Bulgartabak Holding AD. On October 3, 2006 the company shares owned by Bulgartabac Holding AD were sold out by public offering on the Bulgarian Stock Exchange in a mixed, closed auction. Yuri Gagarin became one of its 22 subsidiaries (12 tobacco processors, 9 cigarette manufacturers, and 1 packaging plant).

Yuri Gagarin is a leading manufacturer of multi-color cardboard and paper printed packages and labels for the cigarette, food-processing, cosmetic and other industries and a leading manufacturer of cigarette filters for the cigarette industry.

The production of cigarette filters is an important part of the Yuri Gagarin’s operations. The product list includes a great variety of mono-acetate and combined cigarette filters of different length, diameter, ventilation, pressure drop and segmentation. 

The Printing House of Yuri Gagarin offers a wide range of printing services including: prepress, offset printing, UV spot and overall varnishing, roto-gravure and flexo printing, hot-foil stamping, embossing, creasing, die-cutting, PVC windowing and up to six-point gluing.

The Company distributes its products in Bulgaria, Poland, Romania, Armenia and Slovakia.

The total amount of the company’s capital investments for the period of 2005-2011 is over $40M.

Yuri Gagarin operates from its plant and administrative premises spread on an area of 26.000 square meters in the north industrial area of the city of Plovdiv, Bulgaria.

Major shareholder is Baranko, an offshore company registered in Cyprus, with a stake of 49%.

Financials and other info: https://gagarin.eu/en/page/investor-relations/_-investor-relations

Long Yuri Gagarin PLC as of 2/07/2020

Purchase price: 7.25 BGN

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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