Braemar is an international provider broking, financial and logistics services to the shipping, marine, and energy industries. Braemar operates globally and has offices in UK, USA, Germany and Singapore.
Why would a value investor consider an investment in Braemar Shipping Services Plc?
The main reason for considering an investment in BMS is the relatively low PE ratio based on underlying earnings over the last 3 years. The current PE is also being measured against a relatively low level of earnings in comparison with previous years. So, BMS looks cheap even against a low earnings number. Value investors can have a reasonable degree of confidence that buying the common stock at current prices provides good value against earnings.
BMS would be very cheap if earnings were to increase in the next few years. BMS has improved the funding position of the business for owners of the common stock by reducing debt and management has plans to reduce debt further. Any further reduction in debt would provide a good margin of safety for owners of the common stock and would likely lead to increased earnings in the future.
The price action of the stock can be seen in the chart below.