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Looking for a great deal on a kosher company?


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Well you should be. In particular emerging market value investors should be looking at Israeli-based G. Willi Food International Ltd. ( WILC , quote ), an undervalued company specializing in kosher food products.

[caption id="attachment_58383" align="alignright" width="240" caption="Kosher pizza is a new offering at G. Willi"] [/caption]

What makes G. Willi undervalued?

The price-to-sales ratio is 0.83. The price-to-book ratio is 0.71. Enhancing this is a clean balance sheet with no debt.

Now trading around $4.50 a share, the mean analyst target price for WILC over the next year is $10.00 a share. The 52-week high for the stock is $7.87.

Margins have fallen and rising food costs that can't be passed on to consumers have taken a toll on the company's earnings-per-share growth and sales growth.

Over the last 52 weeks the stock has fallen 39.95%, although it's only off by 1.31% year-to-date however.

Margins are narrow in the food industry, but G. Willi Food still makes money with a 5.43% profit margin. It has a strong franchise with its products found in every food store in Israel. As for ownership, more than one third is held by one Mr. Zwi Willinger, the chairman, president and chief operating officer. Overall, 53% of the shares of the company are owned by insiders.

With trading volume low and a high beta at 1.13, emerging market investors should look to accumulate shares of this undervalued niche food company on its dips.

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.



This article appears in: Investing , Stocks



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