Aalberts N.V. share Price and Graham Value

Not including dividends.

Aalberts Graham Defensive Analysis:

SECTOR: [PASS] Aalberts 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. Aalberts' sales of €3,157 million, based on 2021 sales, pass 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. Aalberts' current ratio €1 195m/€946m of 1.3 fails 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 Aalberts is €525m (and decreasing), while the net current assets are €249m million. Aalberts 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. Aalberts' EPS growth over that period of 270% passes 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. Aalberts's E/P of 7% (using the average of last 3 years) passes 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. Aalberts has a Graham number of √(15 x €3,2 EPS x 1,5 x €20 Book Value) = €38

Dividend: Aalberts paid a (special dividend of  EUR 1,65 in 2021. EUR 1,05?/42 = 2.5%

Conclusion January 2023 at 42 Euros: A bit too much debt, price (koers) a bit too high at the moment compared to Graham Value but considering track record a buy at EUR 42.