Stock Idea…Supremex Inc

Stock Idea…Supremex Inc

Symbol : SXP

Exchange: TSX

Market Cap : 127 Million

Revenue : 166 Million
Three Year Revenue Growth : 7.6 %
Investment Type : Small Cap Value

Price/Earnings : 8.9

Forward P/E : 7.0

Price/Book : 1.5

Price/Sales : 0.8

Price/Cash Flow : 7.0
Dividend Yield : 5.27

Price : 4.46
Investment Stem : Cheap Small Caps Screen

Supremex Inc is engaged in manufacturing and sale of standard and custom envelopes, labels and related products. Its products portfolio includes Stock envelopes, RFID card protector, File folders, Bubble mailers and Degradable window film.

As market leader, Supremex competes effectively within its local markets and nationwide. The Company is currently expanding its reach in strategic markets, quickly gaining market share in the United States, the world’s largest envelope market and strengthening its packaging and specialty products offering

The dreaded metrics from Morningstar…

http://quote.morningstar.ca/Quicktakes/stock/keyratios.aspx?t=SXP&region=CAN&culture=en-CA&ops=clear

 The company’s website…

https://www.supremex.com/

an article from seeking alpha…always useful

https://seekingalpha.com/article/4107223-supremex-envelope

Looks like an interesting company with good institutional sponsorship with Burgundy Asset Management, Norrep Capital, Hillsdale Investment Management, Jarislowsky Fraser and Beutel, Goodman & Company all holding positions in this stock. Has a great cash return of 8.1% with a dividend yield of 5.3%. Another one of Peter Lynch's "Blossoms in the Desert" stocks (a good company operating in a lousy industry). Management have been recently buying back a lot of their stock indicating that they think the stock of their company is cheap.

As always this is just an investing idea. And remember it is wise to buy a basket full of these small cap value stocks so as to spread your risk.