Friday, March 27, 2015

Analysis of DBAG 2015


DBAG, A German private equity company


ISIN DE000A1TNUT7 | WKN A1TNUT

Business: A German private equity company. Their focus lies with the management buy out of small and medium sized companies that have excellent products. To see their full company portfolio then please click here.

Active: Germany, and surroundings. Companies are sometimes more globally oriented.

P/E: 8.9

Here you can find the previous analysis of Deutsche Beteiligungs AG (DBAG) 2014

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

The P/E of DBAG is great with 8.9 and the P/B is also excellent with 1.4 which gives a very clear buy signal from Graham. The earnings to sales get silly due to investment company but still it is up at 63% and the ROE is solid with 15.8% which is an improvement from last year. The book to debt ratio makes me sleep well at night since it is up at 6.9.
Revenue and earnings fluctuate a lot but still in the last five years they have had a yearly growth rate of 1.1% which is not good and this then gives us a motivated P/E of 9 to 11 which means that DBAG is still a little bit undervalued on the market.
They pay an excellent dividend of 6.4% (in two parts one ordinary 0.4 € and one extra ordinary dividend of 1.6 €) which correspond to 57% of their earnings and to be honest with an as good ROE as they have I would prefer to see less paid out and more being used for their investments!

Conclusion: Graham says yes to DBAG and I find it to be ok. The P/E, P/B, ROE and dividend are all great! Since I am already a shareholder I will only say that I will not sell them but I also have no intention of increasing my position in DBAG at the moment. I almost have the feeling that they are up on the peak of the hill. I hope I am wrong but that is the reason for why I will move no further in a direction of increasing my holding.

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