Graham Defensive Value: EUR 0,4 Share price 2019 EUR 1, 2020 EUR 0,6 2021 EUR 2 2022 EUR 3,40 2023 EUR 2,12
Market cap EUR 105 million on sales of EUR 58 million
SECTOR: [PASS] Envipco is a recycling company. Reverse Vending Machines
In The Netherlands, small bottles and cans are sold with a deposit and now recycled. Envipco has machines that can do that but, does not seem to be active in the Dutch market.
SALES: [FAIL] The investor must select companies of "adequate size". This includes companies with annual sales greater than €260 million. Envipco's sales of €58 million are increasing, but based on 2022 sales, Envipco fails 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. Envipco's current ratio €53/€39m of 1,4 is a bit too low.
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 Envipco is €12 million, while the net current assets are €14 million. Envipco passes 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. Envipco's earnings were negative in most of recent years and thus 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. Envipco's E/P of 0% (using this year's estimated Earnings) 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. DPA has a Graham number of √(15 x €0,01 EPS x 1,5 x €0,6 Book Value) = €0,4
Dividend: €0.00
2023 Board member Alexandre Bouri who owned 38% of shares passed away...
SALES: [FAIL] The investor must select companies of "adequate size". This includes companies with annual sales greater than €260 million. Envipco's sales of €58 million are increasing, but based on 2022 sales, Envipco fails 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. Envipco's current ratio €53/€39m of 1,4 is a bit too low.
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 Envipco is €12 million, while the net current assets are €14 million. Envipco passes 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. Envipco's earnings were negative in most of recent years and thus 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. Envipco's E/P of 0% (using this year's estimated Earnings) 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. DPA has a Graham number of √(15 x €0,01 EPS x 1,5 x €0,6 Book Value) = €0,4
Dividend: €0.00
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