HAL Trust after selling Grand Vision

 "the net asset value amounted to € 13,111 million (€ 151.22 per share) on December 31, 2021, compared to € 12,789 million (€ 149.91 per share) on December 31, 2020. The net asset value does not include the positive difference between estimated value and book value of the unquoted companies as of December 31, 2021. This difference is calculated annually and, based on the principles and assumptions set out in the annual report, amounted to € 691 million (€ 7.97 per share) on December 31, 2021" 

EUR 151 + 8 = EUR 159,- share Value. Share Price is EUR 138,-  Value seems 15% higher than Price. 

Benjamin Graham Defensive analysis:

Graham value EUR 168,-

SECTOR: [PASS]  HAL 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. HAL's sales of €7 213 million, based on 2021 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. HAL's current ratio €9 361m/€3 104m of 3.0 easily 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 HAL is decreasing, currently €3 104 million, while the net current assets are €6 257 million. HAL easily passes 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. HAL's reported earnings have increased by over 100% 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. HAL's E/P of 6,5% (using this years adjusted 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. HAL has a Graham number of √(15 x €9 EPS x 1,5 x €145 Book Value) = €168 

Dividend: Is a bit strange, it is 4% and determined by the share price in December..

Conclusion April 2022: HAL Trust has a very solid balance sheet after selling Grand Vision and seems like a buy for other Benjamin Graham Defensive investor at EUR 138,-