Monday 9 March 2015

Analysis of Fugro 2015

Fugro, a Dutch geotechnology company

Company: Fugro

ISIN NL0000352565 | WKN A0ET3V

Business: A Dutch geotechnology company. They are divided into four subunits: Geotechnical (resolve geotechnical problems offshore, nearshore and onshore), Survey (all kind of offshore and geospatial surveys for the development of oil and gas platforms), Subsea Services (repair, construction etc.) and Geoscience (seismic and seabed databases for the exploration of new projects). Currently restructuring so during 2015 we will just have to see which units will survive...

Active: World wide in 60 countries.

P/E: -4.1 (P/E5: 11.7)

Here you can find the previous analysis of Fugro.

contrarian value of P/E, P/B, ROE as well as dividend for Fugro

The P/E of Fugro is due to losses awful with -4.1 but the P/B does however still look good with 1.2. Either way due to losses it becomes a no go from Graham. Earnings to sales as well as ROE are negative so nothing much to say there. The book to debt ratio is ok with 0.7.
In the last six years they have had a good yearly revenue growth of 3.8% which then gives us a motivated P/E of 12 to 16 which means that the stock (compared to P/E5) is slightly undervalued on the market.
They do not pay any dividends which I do not like.

Conclusion: Graham says no to this company and I still look upon it as long term good investment. However the situation is now looking so bad that I would not step in as a new shareholder unless I have seen two or three quarter reports indicating that the turn is arriving. The P/B is good but that´s it!

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Anonymous said...

The good thing though is that a take-over may be upcoming, that's why people currently do like this share.

Anonymous said...

Looks hard to make a take-over. Seems as if the management is prepared to do what-ever it takes to prevent that and they seem to be able to issue more than twice the amount of outstanding shares today as means of fighting the hostile attempt.

Boskalis got 20% in a good company cheap, probably no need to take over since they will still make good money as it is given that it manages to turn around that is...

-Fredrik von Oberhausen

Anonymous said...

There was a report published today regarding the most risky companies in the world.

#1 was the bad bank that Spain created to protect their financial sector.

#4 on that list was Fugro. I almost dropped my coffee cup when I read that.

-Fredrik von Oberhausen