Hot stock pick Orora


This week Money asks stockbroking firm Fat Prophets for a hot stock pick - Orora (ASX:ORA)

Key statistics:

13/10/15 closing share price: $2.390 52 week high: $2.460

Orora packaging

Most recent dividend: 4c Annual dividend yield: 3.14%

With 39 manufacturing plants and 83 distribution sites across seven countries and approximately 5,500 team members, Orora supply packaging products and services to the grocery, fast moving consumer goods and industrial markets. Orora consists of two business groups: Australasia: The Australasia business group is focused on fibre and beverage packaging within Australia and New Zealand. North America: The North American business group is a total packaging solutions provider in the USA, Canada and Mexico. It also has integrated corrugated sheet and box manufacturing and equipment sales capabilities.

A solid performance across Australasia and North America were the key drivers of growth in global packaging company Orora's 2014-15 revenue and earnings. Looking ahead, we expect more of the same in 2015-16, with Orora's commitment to innovation likely to supplement overall returns by not only enhancing the company's position in the North American food market but also by helping it to expand its geographic footprint in Canada. In our view, Orora's strong cash-generating capability and robust balance sheet will continue to provide sufficient bandwidth for the company to fund its growth initiatives, and in doing so deliver improved returns to shareholders.

ORA chart


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