Risk factor
Very high price volatility
Profitability factor
Greatly undervalued vs peers
About
Paranapanema S.A. produces and sells copper and its byproducts in Brazil and internationally. Its products include cathodes, wire rod, drawn wire, sulfuric acid, oleum, iron silicate, and anode sludge from which precious metals are extracted; and copper and bronze connections for hot and cold-water plumbing systems, as well as pipes for industrial, residential gas, and fire-fighting systems. The company also offers semi-finished products of copper and copper alloys; and copper and copper alloy laminates, wires, bars, and profiles that are used for manufacturing parts and components in automotive, electronics, apparel, hardware, bathroom fixture, stamping, machining, and other industries. In addition, it provides copper tubes for use in air conditioning systems, compressors, components, refrigeration systems, and civil construction. The company offers its products under the Caraíba, Eluma, and Paranapanema brand names. Paranapanema S.A. was founded in 1956 and is headquartered in Santo André, Brazil.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. Specifically, the stock is underpriced on P/FCF.
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