A short time ago I told you on the blog about a type of company that I like to call Susan Boyle companies. They tend to be companies unknown to the general public that compete in seemingly unattractive sectors, but have great potential as investments. In this article I will talk about Viscofan, so that you can see a real example of a Spanish Susan Boyle company that became a great success for its investors.
¿A qué se dedica Viscofan?
Viscofan is a company of Navarre origin founded in 1.975 that has gone from being a small cap to trading on the IBEX-35 in the last decades. Many of you may have never heard of this company, but I am sure that the vast majority have indirectly consumed some of its products.
The company competes in one of the least glamorous sectors that can exist, that of the production of artificial casings and casings for the meat industry. In this sector, the company has a world market share that exceeds 26%. That is to say, it is very likely that when you are buying any type of sausage you are indirectly buying products made by Viscofan.
In addition to producing meat casings, the company also owns the well-known brand Wheelbarrow, famous in Spain for its canned asparagus.
The evolution of Viscofan until today
Despite being an apparently unattractive sector, the company has grown to sell its products in more than 120 countries around the world, with factories in Spain, Germany, the Czech Republic, Serbia, the US, Mexico, Brazil and China. being the world leader in its sector. In addition, the important thing is not only the growth of the company, but that it has grown profitably, increasing the remuneration to shareholders steadily in recent years.
In the following graph you can see the evolution of the Viscofan price from December 7, 2.001 to April, 2.014:
Viscofan price 2.001 - 2.014
As you can see, Viscofan's profitability in recent years has been spectacular, with its shares obtaining a total revaluation during this period of 648,72%. This equates to more than 16% compounded per annum excluding the € 5,872 that has been distributed in the form of dividends during this time.
Before ending the article, I want to make it clear that this is not a purchase recommendation. My intention with this article is for you to understand that many apparently boring or unattractive sectors are in many cases very profitable for investors.
My recommendation is that when looking for investment options, do not get carried away by the fashion sectors, as they are often overvalued on many occasions. Above all, do not put aside in your analysis in unglamorous sectors that are forgotten by the investment community, in this way you can find the next Viscofan or some type of Susan Boyle company that helps you make your savings more than remarkable.