One of the most time-consuming parts of my investment process is generating initial ideas. It requires going through hundreds of stocks just to find a few worthy candidates. First, I conduct a broad quantitative screening. Then, I narrow it down to a preliminary list, and only then does the deep analysis begin.
In this section, I will present 3 companies that passed the initial screening and may be worth further analysis.
Please remember this is a preliminary description of these companies, not a full analysis or an investment recommendation.
Financial metrics are sourced from TIKR.
1. Olvi Oyj (OLVAS)
Sector: Beverages (Food and Defensive Consumer).
Market Cap: €594.24 million.
Overview: Olvi is a leading Finnish brewery and beverage company, with local operations in Finland, the Baltic States, Denmark, and Belarus. Founded in 1878, the company offers a wide range of beers, ciders, soft drinks, and water, positioning it as a relatively defensive consumer stock. Olvi maintains a strong focus on its local markets. The main shareholder is the Olvi Foundation, established by the co-founders in 1955, which holds 16.19% of the capital and a notable 52.67% of the voting rights.
Financials: Olvi has demonstrated solid revenue growth, achieving a CAGR of 9.9% over the last 5 years. Capital returns are high, with an average ROE of 13.8% and an average ROIC of 19.8% over the last five years. The company is Debt-Free, operating with a Net Cash position of €35.7 million. Olvi pays approximately half of its net profit as dividends while reinvesting the remainder into growth. Analysts estimate growth of 1.1% for this year and 9.2% for next year.
Valuation: The company currently trades at an LTM EV/EBITDA of 5.6 and an LTM P/E of 10.92. This is significantly below its 10-year averages of P/E 15.84 and EV/EBITDA 8.97.
2. Jumbo S.A. (BELA)
Sector: Retail (Toys, Household Goods, etc.).
Overview: Jumbo S.A. is the leading retailer of toys and seasonal items in Greece, with a successful expansion into Cyprus, Bulgaria, and Romania. Its model relies on large-format stores and competitively priced products, allowing it to capture economies of scale. The Vakanis Family is the principal shareholder, with Apostolos Evangelos Vakanis serving as Chairman of the Board, maintaining a 16.63% stake. This is a clear case of founder/family alignment.
Financials: Jumbo has achieved an impressive revenue CAGR of 17.5% over the last 5 years. Profitability is excellent, with an average ROE of 18.4% and an average ROIC of 19.2% over the same period. Jumbo operates with a Net Cash position of €308 million. Jumbo is a strong cash flow generator, which it uses to pay dividends (a payout ratio of 63.2% last year) and invest in growth, though share buybacks have also occurred during 2025.
Valuation: Jumbo trades at an LTM EV/EBITDA of 8.2 and an LTM P/E of 11.95. This is closely aligned with its 10-year averages of P/E 12.2 and EV/EBITDA 7.11.
3. Sopra Steria (SOP)
Sector: IT Services and Digital Consulting.
·Overview: Sopra Steria is a European leader that provides end-to-end solutions for the core business needs of large companies and organizations. It helps clients remain competitive and grow by supporting them through their digital transformation in Europe and globally. The principal shareholder is the holding company Sopra GMT (primarily owned by the Pasquier and Odin families), which holds 19.6% of the shares and a 29.9% stake in voting rights. Management holds an additional 2.5% of the shares.
·Financials: The company has maintained a revenue CAGR of 5.4% over the last 5 years. It exhibits good profitability, with both average ROE and ROIC over the last 5 years near 13%. Its debt level is moderate, with a Net Debt/EBITDA ratio of 1.67. Cash usage is centered on dividends, acquisitions, and share buybacks.
Valuation: Sopra Steria currently trades at an LTM EV/EBITDA of 6.3 and an LTM P/E of 8.95. This valuation is below its 10-year averages of P/E 12 and EV/EBITDA 7.3. This lower valuation is related to the multiple contraction in the IT sector over the past few years, making it an interesting value candidate.