Sunday, February 15, 2015

Analysis of Eniro 2015


Eniro, a Swedish search and advertisement company

Company: Eniro

ISIN SE0000718017 | WKN 579941

Business: A Swedish search and advertisement company. They have two business units: Local search (with desktop search (50% of revenue), mobile search (8% of revenue), campaign products (7% of revenue) and print (14% of revenue) which was the starting business of Eniro) and the second one is Voice (which gives assistance services via telephone and SMS, 19% of revenue).

Active: Sweden, Norway, Denmark, Finland and Poland

P/E: -0.28

Here you can find the previous analysis of Eniro.

contrarian values of P/E, P/B, ROE as well as dividend for Eniro

The P/E of Eniro is negative due to losses and is -0.3, the P/B however is very good with 0.3 but a word of caution is needed since the intangible assets in Eniro are very large and intangible assets often contain a large portion of fairy tale value. Graham now say no to Eniro. The earnings to sales as well as ROE is of course useless due to losses. Their book to debt value is too low for my liking with 0.4 and what is worse it is now half in comparison to the previous analysis.
They have had an very poor revenue growth in the last five years of -10.8% which gives us a motivated P/E of max 8 if one believe that they will survive that is...
They pay no dividend for the common shares.

Conclusion: Graham says no to Eniro and so do I. They have gone from bad to worse to amazingly and utterly worse. All the figures are looking really bad especially if one considers that the company has not much to show in terms of value since everything is intangible assets.

If this analysis is outdated then you can request a new one.

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