Welcome back to Monday Delights!

This is your Monday morning dose of inspiration. Each week, I’ll share five intriguing investment ideas that recently caught my attention. These ideas are meant to spark your research and help you kickstart the week ahead with fresh insights.

Because these ideas are the result of my first-level idea generation process, they require more in depth research. Therefore, the ideas will often be concise, with occasional references to valuable work from other practitioners that I encourage you to explore.

If you have something fascinating to share that could benefit me and the wider community, don’t hesitate to send it my way—I’d love to hear from you!

Thessaloniki Port Authority SA

• Market Cap: € 373.0M
• EV: € 291.9M
• ROIC: 15.4%
• P/E: 12.1

Thessaloniki Port Authority S.A. operates and manages the Port of Thessaloniki, one of the main commercial gateways in southeastern Europe. Its business model is based on generating revenue from port infrastructure and logistics services, including container handling, conventional cargo operations, passenger and cruise services, ship docking, and storage activities. The company earns fees from shipping lines, freight operators, and logistics customers while also benefiting from long-term trade flows connected to the Balkans and broader Mediterranean region. The port’s strategic location allows the company to position itself as a regional transportation and intermodal logistics hub.

Thessaloniki Port Authority offers investors the opportunity to acquire exposure to a critical Mediterranean transport infrastructure asset at just over 12x earnings. The company continues to expand its terminals to support higher throughput and currently offers an attractive dividend yield of more than 5%, which is likely to grow alongside revenues and profits at a mid-to-high single-digit rate over time.

Telia Lietuva AB

• Market Cap: € 1.3B
• EV: €1.4B
• ROIC: 20.2%
• EV/FCF: 11.1

Telia Lietuva AB provides telecommunications, IT, and digital media services to both residential and business customers in Lithuania. Its business model relies primarily on recurring subscription revenue from mobile services, broadband internet, fixed-line communications, and television packages. The company also generates income from enterprise IT solutions, cloud services, cybersecurity offerings, equipment sales, and data center services. By combining connectivity infrastructure with digital solutions, Telia Lietuva seeks to increase customer retention and average revenue per user while leveraging its nationwide network assets.

Telia Lietuva represents an interesting subsidiary arbitrage opportunity that I have discussed previously. The company is the Lithuanian subsidiary of Telia Company, the largest telecom operator in the Nordics and Baltics, which controls approximately 80% of the business. Despite materially stronger business fundamentals than its parent company, Telia Lietuva trades at a discount of more than 30%, likely reflecting the market’s perception of its controlled-shareholder structure. As is often the case in such arrangements, the company distributes the majority of its excess profits, currently resulting in a dividend yield of just over 5%.

Ennis Inc

• Market Cap: $ 516.5M
• EV: $ 491.1M
• ROIC: 15.8%
• EV/FCF: 9.8

Ennis Inc. is a manufacturer and supplier of printed business products that primarily serves distributors rather than end customers directly. Its business model centers on producing a broad range of customized print products such as business forms, checks, envelopes, labels, promotional materials, packaging products, and commercial print items through a nationwide manufacturing network. The company benefits from economies of scale, long-standing distributor relationships, and acquisitions that expand its production capabilities and regional presence. Revenue is driven by wholesale demand for business printing and branded communication materials across many industries.

Although legacy print media may sound to some readers like a relic from another era, it remains a viable medium for advertising and business communication. While organic volume growth is largely non-existent, the fragmentation of the industry supports consolidators such as Ennis, which can acquire smaller competitors at attractive prices and thereby preserve scale advantages and operating efficiencies. The predictability of the business and its attractive returns on capital may appeal to investors seeking income over growth, especially given Ennis’ stable 5% dividend yield, supplemented by occasional special dividends.

Rathbones Group Plc

• Market Cap: GBP 2.0B
• EV: GBP 2.2B
• ROE: 11.7%
• ROTE: 38.9%
• P/E: 12.7

Rathbones Group Plc is a UK-based wealth and asset management company whose business model is centered on managing investments and providing financial planning services for high-net-worth individuals, charities, trustees, and professional intermediaries. The company generates most of its revenue through recurring management fees calculated as a percentage of assets under management and administration. Additional income comes from financial advisory services, tax and estate planning, banking services, and multi-asset investment solutions. Rathbones focuses on long-term client relationships, personalized portfolio management, and stable fee-based income supported by growing client assets and market appreciation.

While UK wealth management may superficially appear to be a structurally challenged industry, I believe the market underestimates the importance of wealth concentration dynamics. It is not overall GDP growth or aggregate wealth creation that matters most for firms such as Rathbones, but rather the continued accumulation of assets among high-net-worth individuals. As in many Western economies, wealth concentration continues to increase, supporting long-term demand for wealth management services. Although I do not expect Rathbones to become a high-growth story, a dividend yield of approximately 5% combined with a buyback yield of more than 2%, both likely to compound at mid-single-digit rates, appears compelling.

Rai Way Spa

• Market Cap: € 1.5B
• EV: € 1.6B
• ROE: 40.9%
• P/E: 17.0

Rai Way S.p.A. owns and operates broadcasting and telecommunications infrastructure in Italy. Its business model is based on providing transmission network services, tower infrastructure, and signal distribution primarily for television and radio broadcasting. A large portion of its revenue comes from long-term contracts with Italy’s public broadcaster RAI, although the company also serves telecommunications operators and media companies seeking infrastructure-sharing solutions. Rai Way monetizes its extensive network of towers, masts, and transmission facilities by offering reliable nationwide coverage and infrastructure services with relatively stable recurring cash flows.

If you are Italian or a frequent traveler like I am, you will appreciate how ubiquitous RAI remains across televisions in Italy. While there are many bearish theses surrounding legacy media, this dynamic appears noticeably less pronounced in Italy. I would certainly welcome explanations over a glass of Aperol Spritz.

Rai Way continues to reinvest roughly half of its free cash flow into infrastructure investments, currently focused on data centers. I have somewhat mixed feelings about this strategy, but the remaining cash flow is consistently distributed as dividends, currently yielding approximately 6%.

That’s all for this week. I hope some of these ideas sparked your interest and inspired your research for the days ahead. If you’re looking for more inspiration for companies to explore, I recommend checking out last week’s article.

Have a great week!