Monday, October 26, 2015

Analysis of Semperit


Semperit, an Austrian chemical company

Company: Semperit

ISIN AT0000785555 | WKN 870378

Business: An Austrian chemical company. that develops, They produces, and sells highly specialised rubber and plastic products for two different sectors: Medical (examination and surgical gloves) and Industrial (hydraulic hoses, conveyor belts, cable car rings etc.).

Active: Sales offices in Europe, Asian and America. Claim world wide presence but large of of production and employees are in Asia and R&D are more Europe based and then especially in Austria.

P/E: 12.0


This company was analysed due to a request by Matthias posted on the Analysis Requests page.

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

The P/E of Semperit is fully acceptable with 12.0 and the P/B is also excellent with 1.3 which gives a very clear go from Graham! The earnings to sales could have been a bit higher since it is down at only 5% (as an example BASF have around 7%) and the ROE is also not very exciting since it is down at 11%. The book to debt ratio is also excellent with 1.2.
In the last five years they have had an excellent yearly revenue growth rate of 5.8% which then gives us a motivated P/E of 16 to 20 which means that Semperit is undervalued on the market today.
They pay an acceptable dividend in the size of 3.8% which represents 45% of their earnings so that is fully ok.

Conclusion: Graham is saying yes to this company as so do I. The P/E, P/B and dividend are all very good and... well.. the ROE is not that great but they are definitely not levering their balance sheet by carrying plenty of debt so theoretically they can easily improve their ROE by making debt financed investments. Even though Semperit looks excellent... I would probably first increase my holding of the Austrian index fund before I would invest in individual Austrian companies.

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2 comments:

Anonymous said...

Hello, don´t know what your ETF looks like but Semperit is not in ATX.
It´s only in the ATX Prime.

Anonymous said...

Oh, I know Semperit is not in my ETF. I only ment that instead of buying a company such as Semperit I would today prefer to increase my position in the Austrian ETF that I already have.

The reason is that many companies are very cheap in Austria today. I do not know the companies very well but most of the companies included in the ETF are undervalued and i for this reason prefer to take the safer road of owning index than the individual company options. If I today would have bought a company in Austria it would most likely be OMV... I think...

-Fredrik von Oberhausen