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Superior Industries International: Value Idea Contest

May 01, 2012 | About:
bjm1625

bjm1625

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Rating: 3.5/5 (12 votes)

Comments

mohmand
Mohmand - 2 years ago
I think a couple other facts that are important to point out,

1) Gross margins have not been the sexiest, mainly due to the plant maintenance, competitive 2009 pricing (contracts are 2-3 years if I read everything right) and high plant utilization (stuff is breaking down) and higher labor wages. To me this sends mix signals, earnings should boost significantly if they can get their margins back to normal.

2) The founder died last November, and depending on lbo markets, this could make an potentially attractive LBO/MBO candidate given its position and solid balance sheet. Maybe management could also enter some sort of resource conversion activity with a large share buyback?

I also am curious about what multiple could this business be taken out at, I think 6-7x EBITDA or some multiple over TBV could be possible. Does anyone have deal data on other auto suppliers?

I am also long, if It continues to drop below TBV, I will def. buy more.
bjm1625
Bjm1625 - 2 years ago
Sorry everyone there was a table showing the DCF...guess it got lost in translation lol..I will add the table in comment section if comment section allows.
cdubey
Cdubey premium member - 2 years ago
@Bjm You can also edit the article itself, I think.

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