Thursday, March 2, 2017

Analysis of Avtovaz 2017

Logo of Avtovaz

Company: Avtovaz 

ISIN US05453R1014 | WKN 576848

Business: A Russian automotive company. They are the biggest personal car producer in Russia with their own brand, Lada, as well as having production for, for instance, Renault and Nissan which are their largest shareholders. Today they have almost 20% of the Russian market and they hope to increase that as well as increasing export.

Active: In 46 countries with the biggest market being Russia.

P/E: -1.3

Here you can find the previous analysis of Avtovaz 2016.

Contrarian analysis of Avtovaz

The P/E of Avtovaz is negative, the P/B is negative so Graham would not have touched this one.   Earnings to sales are negative and the only good thing is the ROE which is up at 77% but they are also crazy leveraged so... yeah... means pretty much nothing at all. Book to debt ratio is negative.
They have had -0.6% negative growth rate in the last five years so well done on that one also. estimated P/E is well... probably bankrupt.
They do spend some money on R&D still... and of course they pay no dividends.

Conclusion: Graham and I say no to this one. I will try to stop this crazy experiments in the not too far away future.

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