Monday, April 13, 2099

Valuation of all stocks listed in Holland AEX All Share AAX: Benjamin Graham Defensive Investor method

Warren Buffett: "Well, start with the A’s."  Click on the companies below for Graham Evaluation:
Beter Bed Holding AEX:BBED, NL0000339703
Bever Holding: Small real estate fund, bleeder, selling under 5 Euro book value.
Boskalis Westminster Koninklijke AEX:BOKA, NL0000852580
Boussard & Gavaudan Holding Ltd. An expensive hedge fund.
Brunel International AEX: BRNL, NL0010776944
Corbion AEX:CRBN, NL0010583399 
Core Laboratories AEX:CLB, NL0000200384
Comments, questions or E-mails welcome: ajbrenninkmeijer@gmail.com

Wednesday, June 22, 2016

Core Laboratories Intrinsic Value estimate AEX: CLB NL0000200384


SECTOR: [PASS]  Core Labs is a decades old oilfield services company. 


SALES: [PASS] The investor must select companies of "adequate size". This includes companies with annual sales greater than €260 million. Core Lab's sales of €627 million, based on 2015 sales, passes this test.

CURRENT RATIO:  [PASS] The current ratio must be greater than or equal to 2. Companies that meet this criterion are typically financially secure and defensive. Core Lab's current ratio €238m/€120m of 2 is ok.

LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: [FAIL] For industrial companies, long-term debt must not exceed net current assets (current assets minus current liabilities). Companies that do not meet this criterion lack the financial stability that this methodology likes to see. The long-term debt for Core Labs is €520 million, while the net current assets are €118 million. Core Labs passes this test.

LONG-TERM EPS GROWTH:  [FAIL] Companies must increase their EPS by at least 30% over a ten-year period and EPS must not have been negative for any year within the last 5 years. Companies with this type of growth tend to be financially secure and have proven themselves over time. Core Lab's earnings have not increased much over the past ten years due to the fall in Earnings recently.

Earnings Yield: [FAIL] The Earnings/Price (inverse P/E) %, based on the lesser of the current Earnings Yield or the Yield using average earnings over the last 3 fiscal years, must be "acceptable", which this methodology states is greater than 6,5%. Stocks with higher earnings yields are more defensive by nature. Core Lab's E/P of 2% (using this years estimated Earnings) fails this test.

Graham Number value: [FAIL]  The Price/Book ratio must also be reasonable. That is the Graham number value must be greater than the market price. Core Labs has a Graham number of (15 x €2,3 EPS x 1,5 x €2,3 Book Value) = €16 

Dividend: €2/€100 = 2% ? Dividend 2016?  

Conclusion: Core Labs has a low Book Value being a knowledge company. Comparing the price to earnings and/or cash flow might be better than the Graham Number which works well for companies with a lot of assets.  The chart above is the Peter Lynch chart for Core Labs (in US Dollars instead of Euros). It makes more sense than this chart of Benjamin Graham value which reflects the low book value per share.

See: www.beterinbeleggen.nl for more in depth, qualitative analysis of "good" companies.

Comments, questions or E-mails welcome: ajbrenninkmeijer@gmail.com

Graham analysis Corbion (previously CSM) AEX CRBN NL0010583399

Note: I don't understand this company, the history or the numbers. I am clueless.


SECTOR: [FAIL]  Corbion is a bio-technology company? and therefore Benjamin Graham would consider it too risky. 

SALES: [PASS] The investor must select companies of "adequate size". This includes companies with annual sales greater than €260 million. Corbion's sales of €918 million, based on 2015 sales, passes this test.

CURRENT RATIO:  [PASS] The current ratio must be greater than or equal to 2. Companies that meet this criterion are typically financially secure and defensive. Corbion's current ratio €338m/€135m of 2.5 is good.

LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: [PASS]  For industrial companies, long-term debt must not exceed net current assets (current assets minus current liabilities). Companies that do not meet this criterion lack the financial stability that this methodology likes to see. The long-term debt for Corbion is €166 million, while the net current assets are €203 million. Corbion passes this test.

LONG-TERM EPS GROWTH:  [FAIL] Companies must increase their EPS by at least 30% over a ten-year period and EPS must not have been negative for any year within the last 5 years. Companies with this type of growth tend to be financially secure and have proven themselves over time. Corbion's earnings have not increased much over the past ten years and it has made losses recently.

Earnings Yield: [FAIL] The Earnings/Price (inverse P/E) %, based on the lesser of the current Earnings Yield or the Yield using average earnings over the last 3 fiscal years, must be "acceptable", which this methodology states is greater than 6,5%. Stocks with higher earnings yields are more defensive by nature. Corbion's E/P of 6% (using this years estimated Earnings) fails this test.

Graham Number value: [FAIL]  The Price/Book ratio must also be reasonable. That is the Graham number value must be greater than the market price. Corbion has a Graham number of (15 x €1,1 EPS x 1,5 x €8,2 Book Value) = €14,3 

Dividend: €0,40/€21,5 = 2% ? Dividend 2016?  

Conclusion: I don't know enough about the company or business to say much. Earnings of €1,5 per share x 15 = €22,50 shows the price (€21,50 per share) is not ridiculously high or low at the moment?  

See: www.beterinbeleggen.nl for more in depth, qualitative analysis of "good" companies.

My previous numbers had Corbion aka CSM making a profit in 2012?


Comments, questions or E-mails welcome: ajbrenninkmeijer@gmail.com

Monday, June 20, 2016

Brunel International Intrinsic Value AEX: BRNL NL0010776944


SECTOR: [PASS]  Brunel is neither a technology nor financial Company, and therefore this methodology is applicable. 

SALES: [PASS] The investor must select companies of "adequate size". This includes companies with annual sales greater than €260 million. Brunel's sales of €1 229 million, based on 2015 sales, passes this test.

CURRENT RATIO:  [PASS] The current ratio must be greater than or equal to 2. Companies that meet this criterion are typically financially secure and defensive. Brunel's current ratio €439m/€128m of 3.4 is very good.

LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: [PASS]  For industrial companies, long-term debt must not exceed net current assets (current assets minus current liabilities). Companies that do not meet this criterion lack the financial stability that this methodology likes to see. The long-term debt for Brunel is €2,6 million, while the net current assets are €311 million. Boskalis passes this test.

LONG-TERM EPS GROWTH:  [FAIL] Companies must increase their EPS by at least 30% over a ten-year period and EPS must not have been negative for any year within the last 5 years. Companies with this type of growth tend to be financially secure and have proven themselves over time. Brunel's earnings have not increased much over the past ten years.

Earnings Yield: [FAIL] The Earnings/Price (inverse P/E) %, based on the lesser of the current Earnings Yield or the Yield using average earnings over the last 3 fiscal years, must be "acceptable", which this methodology states is greater than 6,5%. Stocks with higher earnings yields are more defensive by nature. Brunel's E/P of 4% (using this years estimated Earnings) fails this test.

Graham Number value: [FAIL]  The Price/Book ratio must also be reasonable. That is the Graham number value must be greater than the market price. Brunel has a Graham number of (15 x €0,7 EPS x 1,5 x €7 Book Value) = €10,6 

Dividend: €0,75/€17 = 4% ? Dividend 2016?  

Conclusion: Brunel has a strong balance sheet. The business is not capital intensive so it will not have a high book value compared to share price. Business is bad due to the low oil price. Brunel provides staff for the energy sector amongst other things.  

See: www.beterinbeleggen.nl for more in depth, qualitative analysis of "good" companies.

Old chart before 2 for 1 stock split. The 40 Euro price (now 20) was too high a few years ago.

Comments, questions or E-mails welcome: ajbrenninkmeijer@gmail.com

Binck value trap? Graham Defensive Screen Intrinsic Value calculation Binckbank AEX BINCK, NL0000335578


SECTOR: [FAIL] Binck  is in the Financial sector, which is one sector that this methodology avoids. Technology and financial stocks are considered too risky to invest in. Several of Graham's criteria, like the Current Ratio and Debt to Current Assets, do not apply to financial companies. As a result, the company will not be able to pass this methodology, although we will include the remainder of the analysis for informational purposes.

SALES: [FAIL] The investor must select companies of "adequate size". This includes companies with annual sales greater than €260 million. Binck's sales of €170 million, based on 2015 sales, fails this test.

LONG-TERM EPS GROWTH: [FAIL] Companies must increase their EPS by at least 30% over a ten-year period and EPS must not have been negative for any year within the last 5 years. Companies with this type of growth tend to be financially secure and have proven themselves over time. Binck's Earnings per share have declined over that period and fails the EPS growth test.

Earnings Yield: [PASS] The Earnings/Price (inverse P/E) %, based on the lesser of the current Earnings Yield or the Yield using average earnings over the last 3 fiscal years, must be "acceptable", which this methodology states is greater than 6,5%. Stocks with higher earnings yields are more defensive by nature. Binck's E/P of 8% (using last year's Earnings) fails this test.

Graham Number value: [PASS]  The Price/Book ratio must also be reasonable. That is the Graham number value must be greater than the market price. Binck has a Graham number of (€0,3 EPS x 5,9 Book Value) = €6,5

Dividend? 50% of Net Income: 0,20/5 = 4%

Binck seems cheap if you consider only (last year's) Earnings per Share and Book Value, but Graham would not consider it a share for the defensive investor because of the decreasing Earnings per Share (maybe due to new Belgian tax law on share-trading and competitor DeGiro ?).

It might be a buy around 2,5 Euros as it is buying backing shares. The lower the price the better.

See: www.beterinbeleggen.nl for more in depth, qualitative analysis of "good" companies.

Old Binck analysis based on 2012 numbers:




Comments, questions or E-mails welcome: ajbrenninkmeijer@gmail.com

Boskalis on sale: Intrinsic Value Graham Defensive Screen Koninklijke Boskalis Westminster AEX: BOKA NL0000852580


SECTOR: [PASS]  Boskalis is neither a technology nor financial Company, and therefore this methodology is applicable. 

SALES: [PASS] The investor must select companies of "adequate size". This includes companies with annual sales greater than €260 million. Boskalis' sales of €3 249 million, based on 2015 sales, passes this test.

CURRENT RATIO: [FAIL] The current ratio must be greater than or equal to 2. Companies that meet this criterion are typically financially secure and defensive. Boskalis's current ratio €2 026m/€1 867m of 1.1 fails this test.

LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: [FAIL] For industrial companies, long-term debt must not exceed net current assets (current assets minus current liabilities). Companies that do not meet this criterion lack the financial stability that this methodology likes to see. The long-term debt for Boskalis is €985 million, while the net current assets are €159 million. Boskalis fails this test.

LONG-TERM EPS GROWTH:  [PASS] Companies must increase their EPS by at least 30% over a ten-year period and EPS must not have been negative for any year within the last 5 years. Companies with this type of growth tend to be financially secure and have proven themselves over time. Boskalis's earnings have increased 160% over the past ten years.

Earnings Yield: [PASS] The Earnings/Price (inverse P/E) %, based on the lesser of the current Earnings Yield or the Yield using average earnings over the last 3 fiscal years, must be "acceptable", which this methodology states is greater than 6,5%. Stocks with higher earnings yields are more defensive by nature. Boskalis's E/P of 11% (using the average of 3 years Earnings) passes this test.

Graham Number value: [PASS] The Price/Book ratio must also be reasonable. That is the Graham number value must be greater than the market price. Boskalis has a Graham number of (15 x €3,1 EPS x 1,5 x €29,9 Book Value) = €46 

Dividend: €1,6/€30 = 5% 

Conclusion: Boskalis seems inexpensive at the moment. You can buy a Euro of Graham Value for 66 cents. Profits will be lower this year, but the price to book of 1 is very appealing. Debt is a bit too high for the defensive investor. 

See: www.beterinbeleggen.nl for more in depth, qualitative analysis of "good" companies.

Previous chart based on 2011 numbers:  


Comments, questions or E-mails welcome: ajbrenninkmeijer@gmail.com

Tuesday, May 31, 2016

Beter Bed Holding Intrinsic Value Calculation Graham Defensive Screen AEX:BBED, NL0000339703


SECTOR: [PASS]  Beter Bed is neither a technology nor financial Company, and therefore this methodology is applicable. 

SALES: [PASS] The investor must s0elect companies of "adequate size". This includes companies with annual sales greater than €260 million. Beter Bed's sales of €385 million, based on 2015 sales, passes this test.

CURRENT RATIO: [FAIL] The current ratio must be greater than or equal to 2. Companies that meet this criterion are typically financially secure and defensive. Beter Bed's current ratio €92m/€53m of 1.7 fails this test.

LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS:[PASS] For industrial companies, long-term debt must not exceed net current assets (current assets minus current liabilities). Companies that do not meet this criterion lack the financial stability that this methodology likes to see. The long-term debt for Beter Bed is €2 million, while the net current assets are €39 million. Beter Bed passes this test.

LONG-TERM EPS GROWTH:  [FAIL] Companies must increase their EPS by at least 30% over a ten-year period and EPS must not have been negative for any year within the last 5 years. Companies with this type of growth tend to be financially secure and have proven themselves over time. Beter Bed's earnings have decreased slightly over the past ten years.

Earnings Yield: [FAIL] The Earnings/Price (inverse P/E) %, based on the lesser of the current Earnings Yield or the Yield using average earnings over the last 3 fiscal years, must be "acceptable", which this methodology states is greater than 6,5%. Stocks with higher earnings yields are more defensive by nature. Beter Bed's E/P of 5% (using this years Earnings) fails this test.

Graham Number value: [FAIL] The Price/Book ratio must also be reasonable. That is the Graham number value must be greater than the market price. Beter Bed has a Graham number of (15 x €0,9 EPS x 1,5 x €3,46 Book Value) = €8,1 

Dividend: €0,87/€20 = 4% 

Conclusion: Beter Bed seems pretty expensive at the moment. As a retailer that rents buildings instead of owning them it has a low Book Value. Maybe a Buy around 15x Earnings -> 15 Euros. 

See: www.beterinbeleggen.nl for more in depth, qualitative analysis of "good" companies.

Comments, questions or E-mails welcome: ajbrenninkmeijer@gmail.com

Sunday, May 22, 2016

BE Semiconductors Industries intrinsic value calculation BESI Graham Defensive Screen


SECTOR:  [FAIL]  BESI is in the Technology sector, which is one sector that this methodology avoids. Technology and financial stocks were considered too risky to invest in when this methodology was published. At that time they were not the driving force of the market as they are today. Although this methodology would avoid BESI, we will provide the rest of the analysis, as we feel times have changed.

SALES: [PASS] The investor must select companies of "adequate size". This includes companies with annual sales greater than €260 million. BESI's sales of €349 million, based on 2015 sales, passes this test.

CURRENT RATIO:  [PASS] The current ratio must be greater than or equal to 2. Companies that meet this criterion are typically financially secure and defensive. BESI's current ratio €299m/€67m of 4.5 passethis test with flying colors.

LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS: [PASS] For industrial companies, long-term debt must not exceed net current assets (current assets minus current liabilities). Companies that do not meet this criterion lack the financial stability that this methodology likes to see. The long-term debt for BESI is €33 million, while the net current assets are €232 million. BESI passes this test.

LONG-TERM EPS GROWTH: [FAIL] Companies must increase their EPS by at least 30% over a ten-year period and EPS must not have been negative for any year within the last 5 years. Companies with this type of growth tend to be financially secure and have proven themselves over time. BESI's earnings were negative in 2012, so it fails this test.

Earnings Yield:  [FAIL]  The Earnings/Price (inverse P/E) %, based on the lesser of the current Earnings Yield or the Yield using average earnings over the last 3 fiscal years, must be "acceptable", which this methodology states is greater than 6,5%. Stocks with higher earnings yields are more defensive by nature. BESI's E/P of 5% (using last years Earnings) fails this test.

Graham Number value:  [FAIL] The Price/Book ratio must also be reasonable. That is the Graham number value must be greater than the market price. BESI has a Graham number of (15 x €1,3 EPS x 1,5 x €8,76 Book Value) = €16 

Dividend: €1,2/€24 = 5% and has been shareholder friendly over the years. 

Note: I haven't done much homework and don't understand the business.

See: www.beterinbeleggen.nl for more in depth, qualitative analysis of "good" companies.

Comments, questions or E-mails welcome: ajbrenninkmeijer@gmail.com

Friday, May 20, 2016

Batenburg Techniek intrinsic value calculation Graham Defensive analysis


SECTOR: [PASS]  BATENBURG TECHNIEK is an installation company not a high tech nor financial Company, and therefore this methodology is applicable. 

SALES: [FAIL] The investor must select companies of "adequate size". This includes companies with annual sales greater than €260 million. BATENBURG's sales of only €136 million, based on 2015 sales, fails this test.

CURRENT RATIO: [PASS] The current ratio must be greater than or equal to 2. Companies that meet this criterion are typically financially secure and defensive. BATENBURG's current ratio €66m/€28m of 2.4 passes the test.

LONG-TERM DEBT IN RELATION TO NET CURRENT ASSETS:  [PASS]  For industrial companies, long-term debt must not exceed net current assets (current assets minus current liabilities). Companies that do not meet this criterion lack the financial stability that this methodology likes to see. The long-term debt for BATENBURG is €0,3 million, while the net current assets are €38 million. BATENBURG passes this test.

LONG-TERM EPS GROWTH:[FAIL] Companies must increase their EPS by at least 30% over a ten-year period and EPS must not have been negative for any year within the last 5 years. Companies with this type of growth tend to be financially secure and have proven themselves over time. BATENBURG made a loss in 2013 and fails this test.

Earnings Yield: [FAIL] The Earnings/Price (inverse P/E) %, based on the lesser of the current Earnings Yield or the Yield using average earnings over the last 3 fiscal years, must be "acceptable", which this methodology states is greater than 6,5%. Stocks with higher earnings yields are more defensive by nature. BATENBURG's E/P of 5% (using last years Earnings) fails this test.

Graham Number value: [FAIL] The Price/Book ratio must also be reasonable. That is the Graham number value must be greater than the market price. BATENBURG has a Graham number of (15 x €0,7 EPS x 1,5 x €15.45 Book Value) = €16 

Dividend: €0,75/€19,6 = 4%

Conclusion: BATENBURG is small, well financed, but has had a bumpy ride. Not a stock for the Defensive Investor.

Comments, questions or E-mails welcome: ajbrenninkmeijer@gmail.com