Central Securities Corp. (CET) | Investment Case

1. Company Snapshot

1.a. Company Description

Central Securities Corp.is a publicly owned investment manager.The firm invests in the public equity markets of the United States.

It also invests on bonds, convertible bonds, preferred stocks, convertible preferred stocks, warrants, options real estate, or short-term obligations of governments, banks and corporations.Central Securities Corp.was founded on October 1, 1929 and is based in New York, New York.

Show Full description

1.b. Last Insights on CET

The recent stock performance of Central Securities Corp. has been negatively impacted by the announcement of International Petroleum Corporation's (IPC) 2024 Year-End Financial and Operational Results, which may have overshadowed Central Securities' own financial performance. The release of IPC's results on February 11, 2025, may have drawn investor attention away from Central Securities, which released its Annual Report to Stockholders on February 12, 2025. Additionally, the market has been focused on the release of 4th quarter and full-year 2024 financial results from various companies, including AMG Critical Materials N.V. on February 26, 2025, and Zealand Pharma on February 20, 2025, which may have contributed to decreased investor interest in Central Securities.

1.c. Company Highlights

Last Price	50.65
Change Percentage	0.37%
Open	50.42
Previous Close	50.46
Market Cap ( Millions)	1464
Volume	25533
Year High	52.44
Year Low	40.24
M A 50	50.65
M A 200	47.93

FCF Yield	1.30%
Dividend Yield	5.33%
ROE	13.23%
Debt / Equity	0.17%
Net Debt / EBIDTA	1.27%
Price To Book	0.88
Price Earnings Ratio	6.84
Price To FCF	76.99
Price To sales	18.27
EV / EBITDA	6.85

2. Transcript Summary

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3. NewsRoom

Central Securities Corporation Announces Reinvestment Price of Shares for Distribution Payable December 19, 2025

Dec -03

Source: businesswire.com

BNP Paribas raises CET1 ratio target to 13% by 2027

Nov -20

Source: reuters.com

BNP Paribas : CET1 RATIO TARGET RAISED TO 13% BY 2027 - ECB authorisation for €1.15 billion share buyback program

Nov -20

Source: globenewswire.com

CET: This Solid Fund Will Soon Pay Out A Large Year-End Distribution

Nov -12

Source: seekingalpha.com

Central Securities Corporation Releases Report to Stockholders

Nov -10

Source: businesswire.com

Zealand Pharma conference call on November 13 at 2pm CET (8am ET) to present third quarter 2025 financial results

Nov -06

Source: globenewswire.com

Central Securities Corporation Declares Year-End Distribution

Nov -04

Source: businesswire.com

Invitation to presentation of BioArctic's third quarter report for July - September 2025 on November 13 at 9.30 a.m. CET

Nov -04

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Investment and Related Activities

Expected Growth: 4.5%

The growth of investment and related activities from Central Securities Corp. is driven by increasing demand for secure and efficient securities trading, rising adoption of digital platforms, and growing need for risk management and diversification.

7. Detailed Products

Equities Trading

Central Securities Corp. offers a range of equities trading services, allowing clients to buy and sell shares of publicly traded companies.

Fixed Income Securities

Our fixed income securities services provide clients with access to a wide range of debt securities, including government bonds, corporate bonds, and municipal bonds.

Derivatives Trading

Central Securities Corp. offers derivatives trading services, enabling clients to hedge risks or speculate on market movements using options, futures, and swaps.

Custody and Settlement

Our custody and settlement services provide secure and efficient management of clients' securities, ensuring timely settlement and accurate record-keeping.

Research and Analytics

Central Securities Corp. offers research and analytics services, providing clients with actionable insights and data-driven recommendations to inform their investment decisions.

Prime Brokerage

Our prime brokerage services provide hedge funds, family offices, and other institutional clients with a comprehensive suite of trading, custody, and financing solutions.

8. Central Securities Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

The threat of substitutes for Central Securities Corp. is moderate due to the presence of alternative investment options.

Bargaining Power Of Customers

The bargaining power of customers is low for Central Securities Corp. as customers have limited negotiating power.

Bargaining Power Of Suppliers

The bargaining power of suppliers is moderate for Central Securities Corp. as suppliers have some negotiating power.

Threat Of New Entrants

The threat of new entrants is high for Central Securities Corp. due to the relatively low barriers to entry in the industry.

Intensity Of Rivalry

The intensity of rivalry is high for Central Securities Corp. due to the presence of several established competitors in the industry.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	0.24%
Debt Cost	3.95%
Equity Weight	99.76%
Equity Cost	7.91%
WACC	7.90%
Leverage	0.24%

11. Quality Control: Central Securities Corp. passed 5 out of 9 key points

Strong Liquidity

Low Debt

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Trinity Capital

A-Score: 7.9/10

Value: 7.3

Growth: 5.6

Quality: 8.5

Yield: 10.0

Momentum: 6.5

Volatility: 9.7

1-Year Total Return ->

Central Securities

A-Score: 7.3/10

Value: 4.8

Growth: 4.6

Quality: 8.5

Yield: 9.0

Momentum: 7.0

Volatility: 10.0

1-Year Total Return ->

PennantPark

A-Score: 6.8/10

Value: 7.0

Growth: 3.2

Quality: 7.0

Yield: 10.0

Momentum: 4.0

Volatility: 9.7

1-Year Total Return ->

Fidus

A-Score: 6.8/10

Value: 3.5

Growth: 3.9

Quality: 7.3

Yield: 10.0

Momentum: 6.0

Volatility: 10.0

1-Year Total Return ->

Goldman Sachs BDC

A-Score: 6.4/10

Value: 6.5

Growth: 4.3

Quality: 6.4

Yield: 10.0

Momentum: 1.5

Volatility: 9.7

1-Year Total Return ->

Rand Capital

A-Score: 5.6/10

Value: 7.8

Growth: 5.6

Quality: 3.8

Yield: 10.0

Momentum: 2.0

Volatility: 4.3

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

16.30%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

7.90%

Central Securities Corp. - US1551231020

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CET

1.c. Company Highlights

Better Quality

Higher Yield

Less Volatile

Expensive

Average Yield

Lower Growth

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.50%)

6. Segments

Investment and Related Activities

Expected Growth: 4.5%

7. Detailed Products

Equities Trading

Fixed Income Securities

Derivatives Trading

Custody and Settlement

Research and Analytics

Prime Brokerage

8. Central Securities Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Central Securities Corp. passed 5 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

50.65$

Current Price

50.65$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA