March 27, 2015

Old and cheap

This week, the Obermatt ratings pointed towards Villeroy & Boch. Their history started in 1748 as a ceramics manufacturer. Since then, they have developed into one of the biggest household brands in Europe – something like the Rolex of comfortable homes.

The stock has outperformed the rapid growth of the Dax since the start of the year. In the Obermatt system, the stock is not yet especially expensive in comparison with other companies. The brand is unique and helps to overcome the recent lull in growth

The securities are partly showing large swings. However, over the last few years, the course has been steadily going up. In the two-year as well as the five-year comparison, it has performed around twice as well the Dax.

The company is one of the old traditional European companies and was able to defend its position through adaption and innovation. Outside of Europe, Villeroy & Boch operates production facilities in Mexico and Thailand and is selling its products in more than 120 countries around the world.

Villeroy & Boch are positioned as a quality brand in the lifestyle business. Their product lines are called "bath and wellness" and ""tableware". The growth is dynamic and they are establishing new markets such as the Arabic region, Russia and China. Almost three quarters of the revenue today is coming from outside of Germany.

The Obermatt stock rating system sees potential in the Villeroy stock. The balance is solid. The expected growth is not exceptional, but steady. The stock is present in the Small Cap Dax (SDax).

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