When it comes to capital allocation there are a lot of important names that fly under the radar of the masses. Today I want to get into John Elkann’s conglomerate Exor (EXXRF — $21.5b). The company owns Ferrari, Juventus Football Club, and much more. I’m a big fan of Bernard Arnault and what he as created with LVMH Group and there seem to be many similarities here (although there are some different industries). John Elkann and Exor Group may follow in the respective footsteps.
Exor is known for being the holding company for the Agnelli Family. It is publicly traded and holds stakes in many of the most notable brands in the world. For example, the company owns a little more than a quarter of Ferrari, ~30% of CNH Industrial, ~25% of Iveco Group, and ~20% of Juventus FC. Exor Group also owns The Economist as well as many other smaller assets.
The company is shareholder focused because it was initially structured similarly to a family office. This can be seen from the amount of buybacks and consistent dividends. There has already been a 2.11% buyback yield so far this year and a forward dividend of 0.55%. This combined number has been in the 5%-7% range over the past 5 years (excluding 2020). The company as boasts an impressive 30% ROE and alright 13% ROIC. However, the best statistic has to the 0.85 Price/Book valuation. Hard to not see this as potentially good opportunity.
This is a very unique capital allocator and one that has a lot of room to grow even though it is already prominent. For example, they own a main commercial truck manufacturer and agricultural equipment manufacturer in Europe. These are hard and physical assets in addition to the luxury brands and sports team. This doesn’t even include Stellantis a car company conglomerate that Exor owns ~4% of. This is a small portion of a sizable company to includes Fiat, Chrysler, Jeep, Maserati, Citroen, Peugeot, Ram, and more.
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Until Sunday,
Soren
I would suggest you to check in more detail the Agnelli family. Andrea Agnelli was the Juventus FC president and he was force to resign due to systematic corruption and break the laws more than once. It´s a very powerful family with a lot of history behind them but I would not trust so much.