EXOR NV is one of Europe's leading investment companies. It is controlled by the Agnelli family. With an NAV of over $17 billion, it has an entrepreneurial history based on more than a century of investments. EXOR makes long-term investments focused on global companies in diversified sectors, mainly in Europe and the United States. The Company holds interests in PartnerRe, a reinsurance company; Fiat Chrysler Automobiles, a designer, developer and producer of cars, light commercial vehicles, components and production systems; CNH Industrial, a producer of agricultural equipment, trucks, commercial vehicles, buses and specialty vehicles; Ferrari, a manufacturer of sports cars; The Economist, a magazine focusing on international news, politics, business, finance, science and technology; Juventus, a sports club; Welltec, a manufacturer of equipment for the food industry.oil industry and Banca Leonardo, a private bank.
Exor is quite affordable in terms of valuation, with a price/earnings ratio of 11.7, a price/book ratio of 1.2 and a price/sales ratio of 0.09. The dividend yield is admittedly very low (0.65%), but with a payout ratio of only 7.59%. The dividend is currently rising very slightly over the long term. So it's not really a classic dividend grower, but distributions are rising and have the potential to do much better in the future.
The company succeeds in creating value over the long term, as evidenced by increased earnings, cash, dividends and assets. EXOR's objective is to beat the MSCI World index over the long term, thanks to the increase in its net asset value. And let's face itshe's very good at it. The company combines its entrepreneurial approach with sound financial discipline. It focuses on the development of its businesses, improving their competitive position and profitability. It maintains a constant dialogue with the management of the companies in which it invests, while fully respecting their operational autonomy.
EXOR's investment decisions are guided by the following criteria:
1) PeopleA team of talented, professional managers with a proven track record who contribute to value creation by "thinking and acting like owners".
2) Economic and financial resultsThe following criteria apply: companies that have demonstrated consistent cash flow and profit generation, with a healthy balance sheet.
3) Competitive positionCompanies that have a sustainable long-term competitive advantage and are "best in class" or have the potential to become "best in class".
4) GovernanceParticipation on boards of directors to monitor and contribute to the company's development.
The company's cash reserves are good, although the current ratio, at 1.7, is slightly down on the previous year. Gross margin is up, as is return on assets, while gearing is down. However, the number of shares outstanding tends to rise over the long term.
EXOR began in 1899 with the founding of Fiat by Giovanni Agnelli. The company has a very long history, and makes a point of focusing on lucrative investments in companies with a sustainable competitive advantage. It's a bit like Warren Buffet's Berkshire Hathaway...., which EXOR has the insolence to beat to the punch...
I've just taken a position on this stock.
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A very interesting company, which does indeed do things a bit like Buffett, especially now that, like him, it's got a foothold in reinsurance. Too bad dividends aren't the Agnelli family's top priority!
In this respect too, they're like Buffett. But they're not as cheap as he is:)
Thank you for this analysis of a European company that has the profile of Berkshire, of which I have been a shareholder for many years.
The fact that the dividend is low is even desirable if they know how to allocate the company's net income, and apparently they do. If you need income, all you have to do is sell a few shares, but in the meantime you won't be taxed.
friendly
Antonio
A shareholder for many years, Antonio I'm impressed... And jealous 😉
I just have a doubt about the quality and future of Exor's stake (which is explained for historical reasons) in Fiat Chrysler Automobiles.
Perhaps. But it's very difficult to judge and predict the future evolution of a society. Most of those who dare to do so fail.
It's better to focus on what already exists. We have a company with good fundamentals for not too much money. That's rare enough these days to be worth noting.
Good morning
Monish Pabrai (an excellent value investor) is very positive on Fiat Chrysler, which suggests that Exor has some excellent holdings.
friendly
Antonio
activation of trailing stop loss 20%