Signals #4 — Containers, Cash, and Compounders

10 overlooked companies across banking, shipping, toys, and industrial roll-ups — all trading at deep value multiples with strong insider alignment and buybacks

June 03, 2025

🇺🇸  Mission Bancorp (OTC:MSBC)

Stock Price (as of May 28, 2025): $193.00

Market Cap: ~$330M
Enterprise Value: ~$285M
P/E Ratio (TTM): 9.1×
ROE: 16.2%
Dividend Yield: 1.8%
Price-to-Tangible Book: 1.05×

Mission Bancorp is a privately held bank based in Bakersfield, California. It specializes in commercial lending across the Central Valley and operates a lean, high-efficiency model. The bank has compounded book value per share at double-digit rates for over a decade, supported by a strong deposit base and disciplined underwriting.

Catalysts:

  • Earnings Momentum: Net income and EPS have grown consistently post-COVID, with steady net interest margins.

  • M&A Optionality: As a high-performing community bank, MSBC is a potential acquisition target.

  • Shareholder Returns: Consistent buybacks and dividends have supported long-term compounding.

Valuation:
At just over 9× earnings and trading close to book value, Mission offers a rare combination of quality, growth, and downside protection.

Risks:

  • Geographic concentration in California’s Central Valley

  • Limited trading liquidity due to OTC status

  • Potential credit cycle impact on commercial borrowers

🇵🇹 CTT – Correios de Portugal S.A. (ELI:CTT)

Stock Price (as of May 28, 2025): €4.16 ($4.51 USD)
Market Cap: €612M ($663M USD)
Enterprise Value: €800M (~$867M USD)
EV/EBIT: 8.2×
Dividend Yield: 6.1%
ROIC: 11.3%

CTT is Portugal’s national postal operator, handling mail, express parcels, and banking services. Over the past decade, it has restructured aggressively, cutting costs, optimizing delivery logistics, and growing its express segment. CTT also owns Banco CTT, a growing digital banking platform with strong deposit inflows.

Catalysts:

  • Digital Banking Growth: Banco CTT continues to scale, with deposits up 30% YoY.

  • Cost Optimization: Ongoing efficiency measures in traditional mail could sustain margins.

  • Dividend Stability: 6%+ yield backed by consistent free cash flow.

Valuation:
Trading at 8.2× EV/EBIT and yielding over 6%, CTT is priced well below peers in European logistics and banks. Potential upside exists if digital banking metrics continue accelerating.

Risks:

  • Declines in core mail volumes

  • Competitive pressure in express delivery from Amazon and DHL

  • Execution risk in Banco CTT’s growth strategy

Sources:

🇰🇷  The Born Korea Inc. (KRX: 475560)

Stock Price (as of May 28, 2025): ₩13,100 ($9.54 USD)
Market Cap: ₩198B ($144M USD)
Enterprise Value: ₩163B (~$119M USD)
P/E Ratio: 10.9×
ROE: 22.4%
Dividend Yield: 2.3%

The Born Korea is a leading Korean food service franchisor, operating over 2,000 locations under well-known brands such as Hong Kong Banjeom 0410, Saemaul Sikdang, and Paik’s Coffee. The company runs a royalty-light model, focusing on brand licensing, menu standardization, and efficient logistics to support franchisees.

Catalysts:

  • Franchise Expansion: Domestic and international store growth, especially in Southeast Asia, continues at a steady clip.

  • Operating Leverage: Low capex model allows high returns on incremental revenue.

  • Brand Equity: Chef Paik Jong-won’s celebrity status fuels organic growth across formats.

Valuation:
At just under 11× earnings and with ROE over 20%, The Born Korea combines stable cash flow with strong brand assets. The balance sheet is debt-free and the firm consistently generates excess cash.

Risks:

  • Saturation in domestic franchise market

  • Celebrity brand dependence

  • Currency risk for international expansion

Sources:

🇬🇧 Polar Capital Holdings Plc (LSE: POLR)

Stock Price (as of May 28, 2025): £5.50 (~$7.01 USD)

Market Cap: £524M ($668M USD)
Enterprise Value: £332M ($423M USD)
P/E Ratio: 12.5×
ROE: 33.8%
Dividend Yield: 11.8%

Polar Capital Holdings is a UK-based specialist active asset manager operating under a multi-boutique model. Founded in 2001, the firm offers long-only and alternative investment strategies across a broad range of asset classes, sectors, and geographies. The company manages approximately £20 billion in AUM and maintains a lean operating structure with a high-performance fee contribution in bull markets.

Catalysts:

  • Income Stream: Attractive dividend yield (~12%) supported by strong cash conversion and capital-light business model.

  • Buybacks: Active repurchasing of shares during pullbacks; share count has been steadily reduced.

  • Reversion Opportunity: Trades well below long-term average multiples, despite stable profitability and high returns on equity.

Valuation:
At 12.5× earnings and under 7× EV/EBITDA, Polar offers a rare blend of growth optionality and high cash return. Strong margins and sticky client relationships support earnings visibility even through cyclical downturns.

Risks:

  • Market Sensitivity: Revenues are directly tied to AUM, which is influenced by equity market performance.

  • Fee Pressure: Secular headwinds from ETFs and passive investing could weigh on long-term growth.

  • Concentration Risk: A few star fund managers account for a large portion of AUM.

Sources:

🇬🇧 The Character Group plc (LSE: CCT)

Stock Price (as of May 28, 2025): £4.20

Market Cap: £43.8M ($55.7M USD)
Enterprise Value: £28.5M ($36.2M USD)
P/E Ratio (TTM): 8.1×
ROCE: 16.6%
Dividend Yield: 7.8%
Share Buyback Yield: ~4%

The Character Group is a UK-based independent toy company engaged in the design, development, and international distribution of toys, games, and giftware. It operates a diversified portfolio that includes proprietary brands such as Heroes of Goo Jit Zu, Simbrix, Doctor Who, and Teletubbies, as well as licensed properties from major franchises including Teenage Mutant Ninja Turtles, Fingerlings, and Aphmau.

Catalysts:

  • Post-Selloff Rebound: Recent tariff-related weakness in the stock (20% of sales come from the U.S., with products manufactured in China) could reverse as headwinds normalize.

  • High Cash Flow Conversion: Despite macro headwinds, Character Group continues to generate strong FCF, allowing for meaningful shareholder returns.

  • Shareholder Alignment: Strong dividend policy (7.8% yield) and consistent buybacks (4% yield) indicate management’s commitment to capital return.

Valuation:
At just 8.1× earnings and a combined shareholder yield of nearly 12%, the company trades far below peers in the consumer products space despite strong profitability (ROCE ~17%). Net cash on the balance sheet and low capex needs make the business highly capital-efficient.

Risks:

  • Tariff Exposure: Trade policy fluctuations affecting toy imports from China may impact U.S. sales and margins.

  • Concentration Risk: Significant sales exposure to a limited number of franchises and retail partners.

  • Consumer Cyclicality: Macroeconomic softness may affect discretionary spending on toys, particularly in the U.S.

Sources:

🇨🇦 TerraVest Industries Inc. (TSX: TVK)

Stock Price (as of May 28, 2025): CAD 54.20

Market Cap: CAD 1.0B ($730M USD)
Enterprise Value: CAD 1.8B ($1.31B USD)
P/E Ratio (TTM): 13.2×
ROE: ~21%
ROIC (est.): 30%+
Dividend Yield: 1.3%

TerraVest is a Canadian industrial holding company executing a long-term roll-up of niche metal fabrication firms across North America. It manufactures and services pressure vessels, fuel containment systems, HVAC tanks, and oil & gas processing equipment. Recently, the company made its largest acquisition to date — buying Engineered Transportation International (ETI), a consolidation platform in the U.S. tank trailer space.

Catalysts:

  • ETI Acquisition: Doubled TerraVest’s revenue base and created a second serial acquisition platform under the TVK umbrella.

  • Defense Contracts: Through ETI, TerraVest secured two U.S. military contracts totaling $818M over five years.

  • Capital Allocation Track Record: Management consistently acquires firms at 4–5× EBIT and integrates at ~3.5× post-synergy multiples, producing exceptional return on invested capital.

Valuation:
Despite being a highly profitable serial acquirer, TerraVest trades at just 13× earnings and under 8× EBIT. If current growth continues, base case FCF estimates suggest upside toward CAD 77–92 per share. The company is still underfollowed and trades well below private market value.

Risks:

  • Cyclicality: End markets include oil & gas and industrial transportation, which may experience downturns.

  • Debt Load: Post-acquisition leverage is elevated (~CAD 850M), though earnings and cash flow remain strong.

  • Management Dependence: The long-term thesis relies on continued discipline and execution by CEO Dustin Haw and team.

Sources:

🇺🇸 Conrad Industries (OTC: CNRD)

Stock Price (as of June 3, 2025): $15.80

Market Cap: $100M
Enterprise Value: $64M
P/E Ratio (TTM): 7.4×
ROE (2024): 14.8%
EV/EBITDA (2025E): ~1.2×
Net Cash: ~$36M

Conrad Industries is a family-run shipbuilder based in Louisiana with five shipyards serving commercial and government clients. After a decade-long downturn in inland vessel demand, Conrad appears poised to benefit from a major fleet replacement cycle. With a $293M backlog, recovering margins, and a strong balance sheet, the company looks like a classic mispriced cyclical.

Catalysts:

  • Barge Replacement Boom: Half the U.S. tank barge fleet is over 25 years old, and backlogs at larger shipbuilders are pushing demand to smaller players like Conrad.

  • Earnings Inflection: Despite overhang from unprofitable Navy contracts, Conrad posted $0.77 EPS in Q1 2025 — its strongest quarter in a decade.

  • Undervalued Real Estate: Conrad’s Gulf Coast shipyards are carried at cost and may be worth close to the entire market cap.

Valuation:
Shares trade at just 1.2× EV/EBITDA and 7.4× earnings, with half the market cap in cash. Scenario modeling shows potential upside to $48–$71/share if EBITDA margins return to historical levels. Even base-case FCF yields justify prices well above current levels.

Risks:

  • Steel Tariffs: A proposed 50% U.S. steel tariff could compress margins on fixed-price contracts.

  • Lumpiness: The backlog is large, but revenue recognition is uneven and may lead to volatile quarterly results.

  • Thin Liquidity: The stock is underfollowed, lacks analyst coverage, and trades OTC with limited volume.

Sources:

  • Yahoo Finance – CNRD

  • StockAnalysis – CNRD

  • The Rational Formula – May 2025

  • Phenom Capital – 2025

  • Salmon Writer – May 2025

🇨🇦 VersaBank (TSX: VBNK)

Stock Price (as of May 28, 2025): C$13.00

Market Cap: C$273M ($200M USD)
Enterprise Value: C$215M ($157M USD)
P/E Ratio (TTM): 12.1×
ROE (TTM): 8.7%
Dividend Yield: 1.4%
Tier 1 Capital Ratio: 13.5%

VersaBank is a Canadian Schedule I digital bank that operates a unique “branchless” model, acquiring loans via fintech partners, point-of-sale financing firms, and structured credit products. It also runs a cybersecurity subsidiary, DRT Cyber, focused on data integrity for financial institutions and governments. Its lean structure allows for relatively high efficiency despite moderate loan growth.

Catalysts:

  • Digital-First Lending Model: VersaBank’s low overhead and focus on niche asset origination have delivered stable net interest margins above peers.

  • Cybersecurity Growth Option: DRT Cyber could serve as a hidden asset if government or enterprise contracts scale.

  • Deposit Base: The bank continues to grow retail and commercial deposits despite broader sector headwinds.

Valuation:
At 12.1× earnings and 1.1× book value, VersaBank trades at a discount to digital banking peers with similar profitability metrics. Its 13.5% Tier 1 capital ratio gives it room to reinvest or return capital.

Risks:

  • Limited Visibility: Sparse analyst coverage and low trading volume on both TSX and Nasdaq listings.

  • Credit Quality: Exposure to third-party fintech originations could introduce credit risk if underwriting deteriorates.

  • Cyber Optionality Unproven: While DRT Cyber adds potential, its revenue contribution is currently minimal.

Sources:

🇺🇸  Chain Bridge Bancorp (NASDAQ: CBNA)

Stock Price (as of May 28, 2025): $35.00

Market Cap: $132M
Enterprise Value: $108M
P/E Ratio: 9.5×
ROE: 12.8%
Dividend Yield: 3.1%

Chain Bridge Bancorp is a boutique community bank headquartered in McLean, Virginia. With just a single branch and a clientele heavily concentrated in Washington, D.C.’s political and nonprofit ecosystem, the bank offers high-touch services to embassies, political campaigns, government contractors, and think tanks. Despite its small footprint, the bank manages over $1 billion in deposits and maintains a remarkably efficient cost structure.

Catalysts:

  • Niche Client Base: A dominant banking provider for embassies and nonprofits in the D.C. area, giving it a durable competitive moat.

  • Capital Return: Recently initiated a dividend and maintains a healthy payout ratio, with ample room for expansion.

  • Strong Credit Quality: Conservative underwriting and low loan-to-deposit ratio (~40%) reduce downside risk in volatile markets.

Valuation:
Trading at 9.5× earnings and roughly 1.1× tangible book, Chain Bridge offers a rare mix of niche dominance, high insider alignment, and low balance sheet risk. The business generates stable returns despite macro headwinds and maintains a net interest margin above peers.

Risks:

  • Customer Concentration: Heavy reliance on a narrow set of institutional clients could create exposure to sector-specific downturns.

  • Geographic Limitation: With only one location, scalability and growth remain structurally capped unless the model expands.

  • Thin Liquidity: Very low trading volume could limit institutional participation or exit flexibility for investors.

Sources:

🇳🇴  MPC Container Ships ASA (OSL: MPCC)

Stock Price (as of May 28, 2025): NOK 20.25

Market Cap: NOK 8.6B ($800M USD)
Enterprise Value: NOK 6.1B ($570M USD)
P/E Ratio: 3.4×
EV/EBIT: 2.8×
Dividend Yield: 18.5%
ROIC: 22%

MPC Container Ships ASA is a Norwegian owner and operator of small- to mid-size container vessels, focused on the intra-regional and feeder segment. The company operates a diversified fleet of over 60 ships, chartered out under both short- and medium-term contracts. It benefits from a lean cost structure, high cash conversion, and disciplined capital allocation.

Catalysts:

  • Massive Shareholder Yield: Over 80% of 2024 net income was returned to shareholders via dividends.

  • Tight Supply: Limited new vessel supply in the sub-5,000 TEU segment, combined with environmental regulations, supports rate resilience.

  • Low Debt Load: Net cash position and strong EBITDA margins reduce financial risk, even in a downturn.

Valuation:
At just 3.4× earnings and 2.8× EV/EBIT, the company trades below liquidation value with substantial downside protection. The current dividend yield exceeds 18%, backed by forward charter coverage and stable cash flows.

Risks:

  • Freight Rate Volatility: A global downturn or collapse in spot charter rates could compress margins.

  • Short-Term Contracts: Some exposure to rechartering risk in weaker markets.

  • Cyclical Sector: Container shipping is highly cyclical and sensitive to global trade volumes.

Sources: