European Capital Partners - A recent decent catch Discover this fund | European Capital Partners
Asset management and fund structuring boutique

A recent decent catch

Nov 17, 2022

As bottom-up investors looking for investment opportunities in a large universe of stocks, we are using quantitative screenings to direct our attention towards potential ideas worthwhile to explore further and perform due diligence on. Internally we call our screening our fishing net we use at least on a monthly basis. One idea that came up recently by scoring well on both our quality and value scores is the Norwegian salmon farmer Leroy Seafood ASA. It trades on 11 times 2022e earnings, 7.8 times cash flow and carries a dividend yield of 5.8%, not bad for Norway’s second-largest seafood producer of Atlantic salmon estimated to generate a return on equity above 15% this year. Risks appear well identified with the exposure to volatile salmon prices and potential diseases like sea lice. With the stock of 45% from its 2022 high, this recent catch in our screening deserves a deeper analysis from an investment perspective.

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