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i think they are on top FTSE 100 Shares are trading very cheap. That is why I will be buying these for my UK share portfolio in the days to come.
Smurfit Kappa Group
packaging producers love Smurfit Kappa Group (LSE:SKG) is treading cautiously for now. While the prices they charge are rising, the volumes are declining as consumer spending remains below cost.
It is fair to say that this particular FTSE firm has been struggling for some time now. Revenue fell 9% in the six months to June, while pre-tax profit fell 14%.
High inflation and weak economic growth continue to pose threats here. And hence the company’s shares trade at a forward price-to-earnings (P/E) ratio of just 11.6 times, which is lower than the FTSE average of about 14 times.
However, I believe that now may be a good time to open a position in a Dublin-based trade. Smurfit Kappa’s share price has soared over the summer and I believe it may continue to do so.
Its half-yearly report also had some green flags for investors to celebrate. In this Chief Executive Tony Smurfit said:
More positive signs from the sector may continue to pull the packagers up. I’m definitely convinced that Smurfit’s share price will continue to grow over the long term. As the e-commerce and discount retail sectors continue to grow, I expect profits to grow strongly here.
A healthy 4% dividend yield through 2023 provides an added bonus for investors here.
Telecom giant like Smurfit Kappa airtel africa (LSE:AAF) offers an attractive mix of low P/E ratio and market-beating dividend yield.
For this fiscal year (through April 2024), the FTSE 100 company trades at an earnings multiple of 9.3 times. It also offers a solid dividend yield of 4%.
Despite the threat of increased competition, Airtel Africa still has the potential to deliver explosive profit growth. As the level of personal wealth rises in its sub-Saharan regions, demand for its telecommunications and mobile money services begins to rise.
Source: GSMA Intelligence
As the graphic above shows, industry specialist GSMA Intelligence expects 98 million more mobile subscribers to emerge in the region between now and 2025.
Airtel Africa is already growing the business very fast. Its total subscriber base grew by 8.8% to 143.1 million between April and June. As a result, revenue and EBITDA grew by 20.4% and 11.1% (at constant currencies) during the period.
And businesses continue to spend heavily on improving their infrastructure and building out spectrum to keep this momentum going. Capital spending last year rose by more than $100 million to $748 million as it expanded its mobile and fiber networks, boosted its 5G capabilities and invested in mobile money and data centers in Nigeria.
Post 2 Cheap FTSE 100 Shares I’m Considering Buying in September! appeared first on The Motley Fool UK.
Royston Wild has no position in any of the stocks mentioned. The Motley Fool UK recommends Airtel Africa Plc. The views expressed on the companies mentioned in this article are the author’s own and therefore may differ from the official recommendations made in our subscription services such as Share Advisor, Hidden Winners and Pro. Here at The Motley Fool, we believe that considering a wide variety of insights can make us better investors.
Motley Fool UK 2023