- Stock market darling Games Workshop isn't overvalued relative to its growth
- Packaging Group Smurfit Kappa scores well
- Clipper Logistics is cheap relative to larger companies, but less so next to smaller peers
Returns management and e-logistics specialist Clipper Logistics (CLG), remains the only FTSE All Share company that passes all of our growth at reasonable price tests for large cap companies. But, at £582m market cap, it is also judged against our smaller company criteria used against the FTSE All Small Companies index. On these it comes up short, because it isn’t one of the cheapest 25 per cent according to the price to earnings growth (PEG) that we use for small-caps.
Companies higher up the market cap scale that score reasonably well on the large cap screen include Games Workshop (GAW), which failed partly because its average compound EPS growth rate over five years is so good, our screen has flagged it as a sense check. Thus remains a high quality business, and the suggestion from the screen is that it’s a holding definitely worth running.
Paper-based packaging specialist Smurfit Kappa Group (SKG) also does well but a slight downgrade in the mean of analysts’ earnings forecasts (from our FactSet data) is highlighted as one of the two tests that it fails.