Fast Retailing annual report 2016

Front page of the annual 2016 Fast Retailing report

For the report in full please go here, to find out more concerning Fast Retailing then please visit analysis of Fast Retailing.

In the financial statement below we see that 2016 was not a great year for Fast Retailing. They had a very, very moderate revenue increase which is very bad and what makes it even worse is that the earnings are far from where they should be. The last time they were down at this level in earnings was in 2009. The sale area did also not improve with an impressive value and year to year sales, especially in Japan, is not something to brag about.

Financial statement for Fast Retailing 2016

Conclusion: Fast Retailing is currently having a tough time and Japan, their oh so important home market, are not delivering as one would have hoped. That should today be a cash cow that should support the expansion everywhere else in the world but instead stores needs to be closed down. I am not very happy with the development in Fast Retailing but I will remain as a shareholder for the time being because I do believe that they will have a bright future with their cloths and their store concept.

Analysis of Tessenderlo 2017

Logo of Tessenderlo 2017

Company: Tessenderlo 

ISIN BE0003555639 | WKN 852064

Business: A Belgian chemical company. They currently have three operating segments : Agro (~40% of revenue with liquid crop nutrients, water soluble SOP and crop protection), Bio-Valorization (~31% of revenue with gelatine, pharmaceuticals, body-care and bio-resources) and finally Industrial Solutions (~29% of revenue with pipes, water treatment and mining).

Active: 21 countries and 100 locations.

P/E: 15.1

To find out more concerning Tessenderlo then please go to analysis of Tessenderlo 2016.

Contrarian analysis of Tessenderlo 2017

The P/E of Tessenderlo is a little bit on the high side with 15.1 and the P/B is definitely too high with 2.5 which gives a no go from Graham. The earnings to sales are ok with 6% but one must admit that the ROE is pretty impressive with 16%. The book to debt ratio is also fully ok with 0.8.
The revenue growth rate is not very impressive for the last five years since it is at -5.7% which then gives us a motivated P/E of around 8 to 10 which means that Tessenderlo is today a bit overvalued on the market.
They pay no dividend at all which I do not like.

Conclusion: Tessenderlo would not be of interest to Graham as it is today with especially the P/B as it is because the P/E is ok. The ROE is also very nice but the fact that they do not pay a dividend is also disappointing. I will remain as a shareholder in Tessenderlo.

Tessenderlo annual report 2016

Front page of the Tessenderlo 2016 annual report

For the report in full please click here and to see my previous summary then please visit Tessenderlo annual report 2016 and to find out more concerning Tessenderlo then please go to analysis of Tessenderlo 2016.

In the financial statement below we see that the revenue was pretty much flat but the restructuring and cost cutting seems to start to have an impact on the result. We therefore ended up with almost 20% more in earnings which is good, good news!

Financial statement for Tessenderlo 2016

Conclusion: Tessenderlo still have along way to go before they start to make some serious money again but the from my point of view that period is getting closer and closer. I will remain as a shareholder in Tessenderlo.

Analysis of Nike 2017

Logo of Nike 2017

Company: Nike

Business: An American company that are selling and developing athletic footwear, apparel, equipment and accessories. They have several brands: Nike, Nike+, Hurley, Jordan Brand and Converse.

Active: They are present world wide and they are known world wide by name and symbol.

P/E: 25.2

For a previous very old report from 2013 please click on analysis of Nike.
Contrarian analysis of Nike 2017

The P/E of Nike is awful with 25.2 and the P/B is also horrible with 7.7 which gives a very clear no go from Graham!
The earnings to sales looks ok with 12% and the ROE is really good with almost 31% which is this case is not coming from debt leverage since the book to debt ratio is very good with 1.3.
The the last five year they have shown an excellent growth rate of 6.1% yearly which gives them a motivated P/E of around 20 which, however, still means that they are overvalued by the market today.
They pay a silly 1.1% dividend which only represents 27% of their earnings so there are room for further increases.

Conclusion: Nike is not a company for Graham as it looks today. The P/E and the P/B is too high and the dividend is too low. The only thing that is really good is the ROE. I will however remain as a shareholder.

Nike annual report 2016

Front page of the annual 2016 report from Nike

This is the first time that I report on the development of Nike. They are running a broken year so this 2016 annual report is already half a year old but as you know I do not invest from quarter to quarter so it does not really matter that much.

To view the report in full please go here and to find out more about Nike you can visit this very, very old report from 2013 called analysis of Nike.

In the financial statement below I see a development that I very much enjoy seeing in companies. Each year the revenue is increase by around 5 to 10% and better yet the earnings are increasing with ever so slightly more 10 to 20%. They are growing, increasing their sales and they are in full control of their costs while doing so. It is in a way sad to admit that one sees this more frequently with American companies than with European.

Financial statement of Nike 2016

Conclusion: Based on the figures Nike is doing very well and there is not much to bring up on the matter. The have a share buy back program of which they have used around 1.2 billion out of 12 billion and those 1.2 billion were bought back at an average share price of 58.44 USD (current share price 56.34 USD). I see no reason to leave Nike and I will therefore remain as a shareholder.