From last year November 2022 "Earnings per share went from EUR 2 to 1,14 and should be EUR 3 this year. "
Earnings per share were EUR 3,34 and Euro 4 ? in 2023?
Benjamin Graham Defensive Analysis:
SALES: [PASS] The investor must select companies of "adequate size". This includes companies with annual sales greater than €260 million. TKH's sales of € 1 817 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. TKH's current ratio 714m/567m of 1,6 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). The long-term debt for TKH is 567 million, while the net current assets are 424 million. TKH 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. TKH's earnings have increased more than 30% since 2013.
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.TKH's E/P of 9% (using this year's estimated Earnings) is high enough for this 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.TKH's E/P of 9% (using this year's estimated Earnings) is high enough for this test.
Graham Number value: [FAIL] [PASS] The Price/Book ratio must also be reasonable. That is the Graham number value must be greater than the market price. TKH has a Graham number of √ (15 x 3,5 EPS x 1,5 x 17,5 Book Value) = € 37
Dividend: TKH 1.65 / 37 =4,4%
Conclusion 2022: The price is now more attractive than 1 year ago.
Conclusion January 2024: @ EUR 37 price seems to be getting very attractive at Earnings per Share of EUR 4 x 15 multiple the price would be EUR 60,-
No comments:
Post a Comment