Jean-Pascal Rolandez presented his in-depth investment thesis on Prosegur (Spain: PSG) at European Investing Summit 2016.
Prosegur is a worldwide security company, focused on the Latin American and Iberian markets. In 14 of the 18 markets where it operates it is the market share leader. It has experienced an 8% sales CAGR over the last ten years. Sales should exceed EUR 4 billion in 2017. Prosegur is well-managed: Despite operating in uneven economic environments (Latin America represents 78% of EBIT), it has displayed remarkable resilience and constant development thanks to tight control and financial discipline by the founding Gut family. As both Latin America and Iberia are recovering economically, EBIDTA margin should progress from the current 11% level. Importantly, the group now focuses resources on higher value-added products and services such as alarms and security systems, as the cash-in-transit division matures. At a discount to peers and on less than 9x 2017 expected EBITDA-to-EV basis, Prosegur offers a good growth-at-a-reasonable-price investment case for long-term investors.
About the instructor:
Jean-Pascal Rolandez is the manager of The L.T. Funds, a Geneva-based investment firm focused on a buy and hold strategy based on a limited number of European stocks with a 5+ year investment horizon. Jean-Pascal has more than 25 years of equity investment experience and has founded the first investment club at the leading French business school ESSEC. Prior to establishing The L.T. Funds, Jean-Pascal held various executive positions at BNP Paribas for 22 years, including as Paribas’ French equity strategist.
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