IMCD

On valuation, the picture is fair. The owner-earnings multiple stands at 16.3×; owner earnings: the cash an owner could take out each year. The implied growth embedded in that price is around 4% a year, against analyst forecasts of 9%. The price, in other words, assumes less than the experts do.

Growth is moderate; the safety picture is stretched. The company scores 8/20 on our value-creation score: creating some value.

Flags to be aware of: The financial cushion is thinner than comfortable. A large part of the company's book value is the price paid for past acquisitions. Some accounting patterns deserve a closer look. As always: this describes the company's numbers; it is not a recommendation.