New Value Analysis of Quarto Group (LSE:QRT)

Published by Studio 61 Wealth Management at 15th January 2017

New Value Analysis of Quarto Group (LSE:QRT)

A new value analysis of Quarto group (LSE:QRT), a company listed on the London Stock Exchange, has been added to our research pages here. The Quarto Group (LSE: QRT) is a global illustrated book publisher and distribution group.

QRT creates more than 600 adult and children’s books a year. These books are sold into more than 45 countries and in more than 35 languages. The subjects range from Art ‘How-To’, Graphic Design, and Home Improvement, to Cooking, Gardening, Motoring, and Crafts. QRT states that it specialises in subjects that can be better explained with photographs or illustrations.

QRT is particularly interesting from a value perspective due to the low price to earnings exhibit. A defensive value investor will want to know whether the low price to earnings metric is as a result of a single event, which boosts earnings, or a sustainable earnings level.

The analysis relating to this post, shows the earnings record from 2002 onwards. An investor will have to use some judgment in assessing the earnings record as earnings are currently relatively high. Also, the reporting currency changed from GBP to USD in 2009. The report gives the investor some guidance on how to assess the current price in comparison with earnings.

QRT looks attractive on other valuation metrics such as the price to book value. Investors in the UK will also get the advantage of an increase in the GBP value of the dividend this year as the dividend is quoted in USD and then translated to GBP at the date of the announcement. For details review the H1 results summary here – https://www.quartoknows.com/Corporate/Investor-News/ .