Monday, May 25, 2015

Analysis of ThyssenKrupp 2015


ThyssenKrupp, a German steel company

Company: ThyssenKupp

ISIN DE0007500001 | WKN 750000 

Business: A German steel and steel products company. They are still dividend into six business areas: Components Technology (assembled camshafts and ready-to-install net-machined crankshafts and engine components), Elevator Technology (passenger and freight elevators, escalators, moving walks, passenger boarding bridges as well as stair and platform lifts), Industrial Solutions (design and construction of chemical plants, refineries and other industrial facilities), Materials Services (carbon and stainless steel, tubes and pipes, nonferrous metals and plastics), Steel Europe (carbon steel flat products) and finally Steel America (production, processing and marketing of premium carbon steel products).  

Active: Almost in 80 countries world wide.

P/E: 67.4


Here you can find the previous analysis of ThyssenKrupp 2014

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

The P/E of ThyssenKrupp is an outrage with 67.4 and the P/B is also bad with 4.8 which gives us a clear no go from Graham. The earnings to sales are no good with 1% and the ROE is also bad with 7%. The book to debt ratio is as bad as a banks with 0.09!
In the last five years they have had a yearly growth rate of -0.6% so simply awful and this then gives us a motivated P/E of 8 which means that ThyssenKrupp is highly overvalued on the stock market today.
They spend money on research which is good but 143% says a lot regarding the "earnings" that they showed for 2014.
They pay a silly dividend of 0.4% which still correspond to 30% of their earnings so well... they better start improving their earnings!

Conclusion: Graham says no and I say a slightly stronger NO! One could celebrate that they show a positive result for 2014... but then on the other hand one should not since they only managed to achieve that due to selling more shares to the poor shareholders and at the same time they give out a dividend! Awful! Fire all the managers. I really do not understand ThyssenKrupp. Energy prices are low, iron ore prices are low and yet ThyssenKrupp have increased production costs! How can that even be possible?

If this analysis is outdated then you can request a new one.

2 comments:

Anonymous said...

Hi Fredrik,

Could you update the analysis with 2016 figures?

Thks.

Fredrik von Oberhausen said...

At the moment I do not have the time for making analysis of companies that I do not own and have no interest in owning. Sorry.