Risk factor
Sufficiently resilient to price shocks
Profitability factor
Greatly undervalued vs peers
About
CMC Magnetics Corporation, established in 1978 and headquartered in Taipei, Taiwan, operates as a diversified global enterprise. Initially renowned for its optical media manufacturing, the company supplies a comprehensive range of products worldwide, including DVDs, CDs, and various inkjet and thermal printable surface media. Complementing its media offerings, CMC also designs and produces bespoke packaging solutions. These encompass original CD jewel cases, slimline CD cases, and a variety of DVD boxes – standard, slim, and Blu-ray sizes – alongside specialized cake boxes. Beyond physical products, the corporation extends its expertise to provide an array of related services such as packaging, printing, and sourcing. Demonstrating significant diversification, CMC Magnetics is actively involved in multiple unrelated sectors. Its portfolio includes film production and distribution, as well as real estate development. The company further operates in the hospitality sector, offering catering and associated services. Additional business ventures include passenger car rental, electronic information provision, general advertising services, and broader investment activities. On the manufacturing front, CMC produces thin-film solar cells, solar and touch panel products, and various plastic containers like boxes and baskets. Finally, the company's industrial reach also extends to the textile industry, covering fabric dyeing and finishing, weaving, and the processing and trading of diverse textile goods.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is 'cheap' on P/E, undervalued on EV/EBITD