Is MICC a good stock to buy? We came across a bullish thesis on The Magnum Ice Cream Company N.V. on Valueinvestorsclub.com by ShowMeThe$$. In this article, we will summarize the bulls’ thesis on MICC. The Magnum Ice Cream Company N.V.’s share was trading at $18.03 as of June 11th. MICC’s trailing and forward P/E were 32.60 and 16.75 respectively according to Yahoo Finance.
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The Magnum Ice Cream Company N.V. engages in the ice cream business in the Netherlands. MICC is presented as a compelling long idea following its spin from Unilever, with the company positioned as the world’s largest ice cream manufacturer and trading at a significant discount to peers despite improving fundamentals and multiple catalysts. MICC operates across premium ice cream brands including Magnum, Ben & Jerry’s and Wall’s, alongside global restaurant and retail channels, with its mix skewed toward higher-margin novelty and impulse formats.
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The investment case centers on deeply depressed earnings due to peak cocoa inflation, legacy underinvestment under Unilever, and spin-related costs, which together mask normalized EBITDA power. MICC trades around ~6–7x forward EBITDA versus CPG peers at ~10x+ and Froneri’s continuation vehicle at ~12.6x, implying a substantial valuation gap despite similar or stronger long-term growth potential.
As cocoa prices normalize from prior peaks and hedges roll off, margins are expected to expand sharply, supported by ~€500M of cost takeout, already-delivered productivity gains, and cabinet-led distribution expansion. Under a base case, MICC is expected to achieve ~20%+ EBITDA margins by FY27 with a re-rating toward ~10x EBITDA, implying approximately ~80–85% upside and ~87% total shareholder return, while a more optimistic scenario incorporating faster margin recovery and a snacking-like multiple suggests over ~130% upside.
Catalysts include the May 7 Investor Day, H1 2026 results, and continued cocoa deflation that should accelerate earnings power realization while narrowing the SOTP discount versus Froneri, which trades at a meaningful premium after executing similar cost transformation initiatives. Setup remains asymmetric with strong rerating potential.
Previously, we covered a bullish thesis on PepsiCo, Inc. (PEP) by Kroker Equity Research in October 2024, which highlighted strong pricing power, diversified global snacks and beverages portfolio, and steady dividend growth. PEP’s stock price has depreciated by approximately 17.77% since our coverage. ShowMeThe$$ shares a similar view but emphasizes post-spin margin normalization, cost takeout, and valuation rerating in the ice cream and CPG space.
The Magnum Ice Cream Company N.V. is not on our list of the 40 Most Popular Stocks Among Hedge Funds. As per our database, 22 hedge fund portfolios held MICC at the end of the first quarter which was 25 in the previous quarter. While we acknowledge the risk and potential of MICC as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than MICC and that has 10,000% upside potential, check out our report about this cheapest AI stock.
Disclosure: None.
