Tuesday 16 September 2014

Analysis of PNE WIND 2014

PNE WIND, a German wind power company

Company: PNE WIND


Business: A German wind power company. Their focus lies in the development, realisation, financing and operation of wind farms on land and at sea, at home and abroad. They organize the construction of wind power plants and they also run them on their own to a small extent. Currently they are bringing in capital to be able to start up yield co since investors prefer to buy that.

Active: 14 countries in Europe, South Africa and North America.

P/E: 8.4

Here you can find the previous analysis of PNE WIND.

contrarian values of P/E, P/B, ROE as well as dividend for PNE WIND
The P/E of PNE WIND is great with 8.4 and so is the P/B with 1 and this gives a very clear go from Graham! The earnings to sales are very nice with 10% but the ROE is only so, so with almost 12%. The book to debt ratio of 0.5 I do not like at all here.
In the last five years they have had a fully acceptable yearly revenue growth rate of 3.9% which gives us a motivated P/E of 12 to 16 which means they are currently undervalued by the market.
They pay a good dividend of 3.9% which corresponded to 33% of their earnings so both are fully acceptable.

Conclusion: Graham says still yes to this company and I am currently a little concerned with the change of the company and that they are bringing in so much capital by selling new shares to the shareholders. I never like when companies give dividend with the right hand and issue new shares with the left hand. Still P/E, P/B and dividends are all looking good!

PNE WIND will remain on the Stocks of Interest list and they even advanced two positions using the data from the annual report of 2013.

If this analysis is outdated then you can request a new one.

No comments: