There are no safe havens in the stock market. Every stock carries risk. But some less than others. This column features stocks that have shown one or more of the following characteristics: less volatility, better earnings, larger market caps, safe and increasing dividends. In these times of turmoil, our goal is to show readers better opportunities for investing with fewer risks.

October 6, 2008 - Bemis Co. (BMS-NYSE) manufactures and sells flexible packaging products and pressure sensitive materials primarily in the United States, Canada, South America, and Europe. The company operates in two segments, Flexible Packaging and Pressure Sensitive Materials. The Flexible Packaging segment manufactures multilayer flexible polymer film structures and laminates for food, medical, and personal care products, and non-food applications utilizing vacuum or modified atmosphere packaging. It also offers blown and cast stretch film products; carton sealing tapes and application equipment; custom thermoformed plastic packaging; multiwalland single-ply paper bags; printed paper roll stock; and bag closing materials.

Its products for technical markets comprise micro-thin film adhesives used in delicate electronic parts assembly and pressure sensitives utilizing foam and tape based stocks to perform fastening and mounting functions. Bemis Company serves food and beverage, chemical, agribusiness, medical, pharmaceutical, personal care, electronics, automotive, construction, graphic industries, and other consumer goods markets. The company, formerly known as Bemis Bro. Bag Company, was founded in 1858. It changed its name to Bemis Company, Inc. in 1965. Bemis Company is based in Neenah, Wisconsin.

Don't expect anything sexy here. This is a basic investment, one that somehow manages to keep growing in spite of all the ups and downs of the economy. It's a company that knows how to make money. And that's why conservative investors will find it of interest.

Over the last 10 years, profits grew by 6.5% a year, on average. Over the last 5 years, that number diminished to 3.7% a year. But now analysts see better growth ahead, predicting 9.8% a year, on average. Last year, earnings per share (eps) were $1.73. This year analysts (all 11 of them) expect $1.76 as the consensus (high estimate is $1.82 with a low of $1.68). Next year, they see $1.94, up 10.22%. This quarter's earnings announcement will be on October 28 with expectations of 43 cents a share, up from 40 cents in the same quarter last year.

These results are coming in spite of higher raw material costs and global economic slowing. Revenues were $3.65 billion last year. Analysts see $3.84 billion this year and $3.94 billion next year. International sales were 36% of the total. Two factors helped increase sales and profits: price hikes were implemented and they stuck, and the weak dollar converted into better sales and profits. Better demand in recent quarters is coming from Europe, particularly in the meat and cheese, dairy and liquid, and dry food sectors.

Bemis is working on better efficiency, rerouting production to its most efficient plants. It's also emphasizing more-profitable product lines and new products in its Flexible Packaging sector, hoping for higher sales and better margins. With additional growth in the European markets, all of these elements should overwhelm the higher cost of resin and other raw materials. Of course, if all economies continue to slow, the consumer will be spending less, even on food items. Bemis isn't exempt from the real world.

More numbers: Trailing P/E is 14, the lowest since 2000. The Forward P/E is 12.11. Price to Sales for the last 12 months was .66. Price to Book is 1.48. Profit margin for the last 12 months was 4.61% while Operating Margin was 7.61%. Return on Equity was 10.72%. Debt to Equity is .51. Current Ratio is 2.07. There's $171 million in cash in the treasury. The dividend is 88 cents, giving a yield of 3.5%. The stock also carries a defensive Beta of .87.

Bemis isn't going to give an investor any thrill ride, up or down. And that's its appeal. Slow and steady is the game plan with analysts seeing an uptick in earnings growth over the next 5 years. Of course, like most other companies, Bemis will need decent economic growth in all parts of the world to achieve it.

- Company Web site: www.bemis.com

- Ted Allrich