Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
Based in Koscian, Poland, CDRL S.A. specializes in the design, manufacturing, and distribution of a diverse range of products for children. Their extensive inventory includes clothing, accessories, underwear, footwear, toys, baby food, hygiene and care items, stationery, and nursery equipment such as prams and cribs. The company distributes its merchandise through a network of retail stores situated in various international markets, including Poland, the Czech Republic, Romania, the Baltic States, Belarus, Hungary, Slovakia, Bulgaria, Russia, Kazakhstan, Saudi Arabia, Mongolia, and Oman. CDRL S.A. manages a portfolio of distinct brands, notably Coccodrillo, Lemon Explore, Petit Bijou, Broel, Buslik, and Enjoy Baby.
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