TKH Group Twentse Kabelfabriek Holding $TWEKA stock Price compared to Benjamin Graham Value

NLDR in the context of TKH Group stands for "Networked Learning and Development Resources." This term is often associated with the company's focus on integrating innovative technologies and solutions to enhance operational efficiency and support customer needs in various sectors, including telecommunications, construction, and industrial solutions.

TKH Group is recognized for its commitment to innovation, particularly in areas such as smart vision systems, smart manufacturing, and smart connectivity. The integration of NLDR reflects the company's strategy to leverage advanced technologies and collaborative learning approaches to drive growth and sustainability within its operations and offerings. 

Benjamin Graham Defensive Analysis:

SECTOR: [FAIL] TKH formerly Twentse Kabelfabriek Holding is in technology. Technology and financial stocks were considered too risky to invest in when this methodology was published. 

SALES: [PASS] The investor must select companies of "adequate size". This includes companies with annual sales greater than €260 million. TKH's sales of  € 1 847 million based on 2023 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 1 000m/645m 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 723 million, while the net current assets are 365 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 11,5%  (using this year's estimated Earnings) is high enough for 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. TKH has a Graham number of √ (15 x  3,7 EPS x 1,5 x  20 Book Value) =   € 41

Dividend: TKH 1.70 / 31,2 =5,4%

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,-  December 2024 sales and earnings have decreased around 10%, the share price now seems more attractive. Long-term debt is increasing to enable dividends and share buybacks, thus not for the dividend investor.