Saturday, June 27, 2015

Analysis of Uniqa


Uniqa, an Austrian insurance company

Company: Uniqa

ISIN AT0000821103 | WKN 928900 

Business: An Austrian insurance company. They are, as most of them, standing on three pillars: Property & Casualty Insurance (45% of premiums), Life Insurance (17% of premiums) and finally Health Insurance (38% of premiums). They are to 31.4% owned by Raiffeisen Zentralbank and to 30.6% owned by Uniqa Versicherungsverein Privatstiftung.

Active: Austrian and Central an Eastern Europe. In total in 19 European countries.

P/E: 8.8


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

The P/E of Uniqa is excellent with 8.8 and the P/B is also great with 0.8 which gives a very clear buy from Graham. The earnings to sales are ok with 5%and the ROE is so, so with 9.4%. The book to debt ratio of 0.1 is a bit scary but it has been much, much worse not that long ago.
In the last five years they have had a poor yearly revenue growth rate of 0.4% which then gives us a motivated P/E of around 8 to 10 which means that Uniqa is fairly valued on the market today.
They pay an excellent dividend in the size of 5.1% which represents 45% of their earnings which I find to be fully ok.

Conclusion: Graham says yes to Uniqa and so do I. The P/E, P/B as well as dividend are all excellent and since they increased the shares and improved their equity they look a lot less scary to invest in today in comparison to back in 2012/2013. I will think a little over what I will do with Uniqa.

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