## TEN CATE is being taken private for €24 . Good for shareholders who bought at levels under the Graham Value, but not those who paid more than €30 per share. http://www.iex.nl/Aandeel-Koers/11903/Ten-Cate-Koninklijke.aspx see also www.moneymakingmachines.nl

## Wednesday, March 06, 2013

### Ten Cate earnings per share from €2,3 in 2011, drop to €0,9 in 2012

Ten Cate old

**Chart above before 2012 results, chart below with 2012 results.**

**Ten Cate new**

**SECTOR:**[PASS]

**Ten Cate**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.

**Ten Cate's**sales of

**€1049 million**, based on 2012 sales, pass 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.

**Ten Cate's**current ratio €413m/€179m of

**2.3**passes the 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 meet this criterion display one of the attributes of a financially secure organization. The long-term debt for

**Ten Cate**is

**€280 million**, while the net current assets are

**€234**million.

**Ten Cate**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.

**Ten Cate's**EPS growth over that period of 2

**3%**fails the EPS growth 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.

**Ten Cate's**E/P of

**5**

**%**(using the current 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.

**Ten Cate**

**has a Graham number of √(22,5 x €1,7 EPS x 17,25 Book Value) = €26**

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

## No comments:

Post a Comment