Gregor Sampson of Braun, von Wyss & Müller presented an in-depth investment thesis on Randstad (Amsterdam: RAND) at European Investing Summit 2017. Toward the end of the session, Gregor summarized his theses for and Safilo (Italy: SFL) and Trinity Mirror (London: TNI).

Randstad was founded in 1960 by Frits Goldschmeding who remains the largest shareholder. RAND is one of the leading global staffing and recruiting companies. It has grown EPS at a CAGR of 13.7% since 2003, driven by strong M&A execution and organic growth. In Gregor’s view, risks related to the level of hiring activity in Europe and North America are outweighed by a continued long-term shift to variable cost bases and outsourcing. Trading at ~12x 2017 estimated earnings and with a forward-looking FCF yield of 8.4%, Gregor considers RAND shares quite cheap.

Safilo is the number-two producer of sunglasses and optical frames. SFL generates the bulk of revenue through licensed brands (including Dior, Boss, Tommy Hilfiger) but also has proprietary in-house brands. The company has made strategic mistakes over the decades and risks losing licenses. Nonetheless, at 0.4x enterprise value to sales, the market potentially prices an excessively negative scenario. SFL could benefit from long-term margin normalization by completing its ERP implementation and achieving further cost savings.

About the instructor:

Gregor Sampson is an investment analyst with Braun, von Wyss & Müller. He previously worked as an analyst with Privatinvestor Verwaltungs AG and as a valuations consultant at PwC. He has been practicing Value Investing since 2012 and prefers companies with understandable business models at discount to intrinsic value. Gregor Sampson holds a degree in Finance from the University of St. Andrews.

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