Posted on July 27, 2018
Boskalis (OTC:RBWNY) is a Dutch dredging and maritime company with high profit margins. The stock has been out of favor because the dredging industry is at a low point—there are no major projects right now but there will be. The stock has picked up some interest from the value investing community.
The company has 523 million shares, the stock trades for €25.78, and the market cap is €13.48 billion ($15.8 billion). It takes $1.17 to buy one euro. Earnings per share were €1.15 and the price to earnings ratio is 22.4. The dividend is €1 and the dividend yield is 3.92%.
Third Avenue (MUTF:TAVFX) recently bought shares. In the shareholder letter, management notes that there are four major dredging companies and that they are all located in Holland. Widening the Suez Canal in Egypt was a massive project that recently ended. The industry is in a lull and waiting for its next big project. Third Avenue points out that with offshore windmills and urbanization, the industry is in demand. When Boskalis is in full dredge mode, its Ebitda margins are 17%. Third Avenue has bought the stock on depressed Ebitda of to market cap of seven times and one times book value.
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