Risk factor
Very poor trading liquidity
Profitability factor
Greatly undervalued vs peers
About
J. Smart & Co. (Contractors) PLC, operating with its various subsidiaries, is a prominent developer, constructor, and contractor across the United Kingdom. Their extensive portfolio covers a broad spectrum of projects, ranging from essential public works and local authority developments to diverse commercial properties such as shopping centers, offices, factories, and warehouses, alongside private and landlord-managed housing initiatives. Beyond these core activities, the company actively engages in securing building and civil engineering contracts, undertaking the development and sale of residential units, and creating industrial and commercial properties specifically for leasing purposes. They also provide flexible serviced office accommodations and execute smaller to mid-scale building and civil engineering tasks for a varied client base. Furthermore, J. Smart & Co. extends its expertise by offering plumbing support services to fellow construction enterprises. The company has been in operation since its establishment in 1947 and is centrally administered from its headquarters in Edinburgh, United Kingdom.
Company Valuation
Based on key historical and expected multiples, the stock is greatly undervalued relative to its peers. In particular, the stock is underpriced on P/E, 'cheap' on EV/EBIT