Van Lanschot Kempen share Price and Graham Value

Share price EUR 27.3 February 2024 / EUR 23 November 2022 = 19% increase (around the same as MSCI World Index increase in the same period). 

SECTOR: [FAIL] Van Lanschot Kempen is a financial Company, and therefore this methodology is not applicable. Current Ratio and so on do not tell us much and we use 1x Book instead of 1,5x Book for the Graham Number

SALES: [PASS] The investor must select companies of "adequate size". This includes companies with annual sales greater than €260 million. Van Lanschot Kempen's sales of €562 million, based on 2022 sales, pass this test. Sales have recently been increasing.

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. Van Lanschot Kempen's EPS have flat over the past decade, Van Lanschot Kempen fails this 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. Van Lanschot Kempen's E/P of 7% (using last years earnings) passes this test. 

Graham Number value: [PASS] The Graham number value must be greater than the market price. Van Lanschot Kempen has a Graham number of √(15 x €2,2 EPS x 1,0 x €32 Book Value) = €32 

Dividend: EUR 1,75/EUR 27,3 = 6%

Conclusion 2024: Good dividend, fairly priced at EUR 27,3 

Notes from November 2022 

Van Lanschot seems to be on sale at EUR 23 per share with a book value of EUR 30 and dividend of EUR 1,50 (7%). 

The https://en.wikipedia.org/wiki/Graham_number is also not usually used for financial companies like banks.

For banks and real estate, I have decided to use 1 x book value instead of 1,5 x book value which makes more sense for other industries. The Graham Value is the geometric average of 15 x Earnings per Share and Book Value x  1,5 (in this case x 1).

Conclusion September 2020: (@ EUR 16 ) was: You can buy a Euro for 54 cents? (https://sinaas.blogspot.com/2020/09/van-lanschot-kempen-share-price-and.html)

The price increased 44% since then. The price still seems reasonable today (November 2022).