Robust FY19 update, still attractively valued

Strix is a unique strategic asset on the UK market, with industry leading margins and many growth initiatives underway.  It screens well for investors with a ‘sustainability’ mandate, given its alignment to health products and improved filtration.

An attractive investment case. The share price has rallied by c 15% in recent months. However, in our view, this is still an attractively rated entry point to the shares. Valuation multiples are undemanding at 13x PER, 9.7x EV/EBITDA. The dividend yield at the current price is a compelling 4%. We estimate that fair value for the shares lies in the 220p-240p share price range.