The total investment is EUR 230m.
Graham Analysis:
SALES: [PASS] The investor must select companies of "adequate size". This includes companies with annual sales greater than €260 million. Sif Holding's sales of €375 million, based on 2022 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. Sif Holding's current ratio €135m/ €151m of 0,9 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 do not meet this criterion lack the financial stability that this methodology likes to see. The long-term debt for SIf Holding is €101 million, while the net current assets are - €16 million. Sif Holding fails this test, although it has no long-term debt except for leases.
LONG-TERM EPS GROWTH: [FAIL] [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. I don't have Sif Holding's EPS from 10 years ago when it was a private company, therefore Sif Holding neither passes or fails this test. The company is currently profitable and growing.
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. Sif Holding's E/P of 3,5% (using last year's 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. Sif Holding has a Graham number of √(15 x €0,35 EPS x 1,5 x €4,1 Book Value) = €6
Dividend: 0 = 0% (it was paying a dividend, but is now investing in building more factory space)
SECTOR: [PASS] Sif Holding is in offshore and 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. Sif Holding's sales of €375 million, based on 2022 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. Sif Holding's current ratio €135m/ €151m of 0,9 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 do not meet this criterion lack the financial stability that this methodology likes to see. The long-term debt for SIf Holding is €101 million, while the net current assets are - €16 million. Sif Holding fails this test, although it has no long-term debt except for leases.
LONG-TERM EPS GROWTH: [FAIL] [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. I don't have Sif Holding's EPS from 10 years ago when it was a private company, therefore Sif Holding neither passes or fails this test. The company is currently profitable and growing.
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. Sif Holding's E/P of 3,5% (using last year's 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. Sif Holding has a Graham number of √(15 x €0,35 EPS x 1,5 x €4,1 Book Value) = €6
Dividend: 0 = 0% (it was paying a dividend, but is now investing in building more factory space)
Conclusion last year 2022 at EUR 10: Not for the Graham Defensive investor, could be part of an impact investing portfolio at the current price
Conclusion January 2024: If you had bought last year, you could have sold in the run-up to EUR 15. Now you can buy again at a price under the rights issue. A large order was cancelled recently but the company thinks it can maintain planned EBITDA. (EBITDA seems to be the wrong metric to me).
Sif is going to produce green hydrogen in the Port of Rotterdam using electricity produced by the world's most powerful wind turbine, the GE Haliade 14 MW model, installed next to Sif itself :
Grijs = H2 uit gas, blauw is H2 uit gas met carbon sequestration, groen is H2 uit stroom
Om de Nederlandse ambitie voor windenergie op zee waar te maken, is het noodzakelijk om een deel van de geproduceerde elektriciteit om te zetten in waterstof. Gecentraliseerde offshore, off-grid waterstofproductie lijkt hiervoor de best passende technologie. Een belangrijk probleem voor de introductie en uitrol hiervan is de huidige impasse tussen vraag en aanbod. De huidige prijs van groene waterstof ligt gemiddeld twee tot driemaal hoger dan blauwe waterstof. Hierdoor is er weinig vraag naar groene waterstof, terwijl de prijs van groene waterstof juist sterk zou kunnen dalen als deze op grote schaal geproduceerd kan worden. Om dit probleem op te lossen, is het noodzakelijk om zowel aan afnemers als aan ontwikkelaars van windparken aan te tonen dat offshore waterstofproductie technisch mogelijk en economisch aantrekkelijk is.
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