Basic Fit not a Graham Defensive stock

SECTOR: [PASS]  Basic-Fit 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. Basic-Fit's 2018 sales of EUR 404 million, 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. Basic-Fit's current ratio €40m/€128m of 0.3 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 Basic-Fit is €377 million, while the net current assets are minus €88 million. Basic-Fit 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. Basic-Fit was losing money until 2017 (due to growth) 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. Basic-Fit's E/P of 2% (using this 0,50 Earnings per share and a share price of EUR 33) 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. Basic-Fit has a Graham number of √(15 x €0,5 EPS x 1,5 x €6,5 Book Value) = €8,5 

Dividend: No dividend

Basic-Fit is expanding rapidly in France, where there might be less competition than in Holland (I don't know). It can be argued that the company is making a lot of money and investing to earn more.