Friday, June 9, 2017

Uniper analysis 2017

Logo of Uniper 2017

Company: Uniper


Business: A German energy company. They are standing on three pillars: European Generation (from all kind of sources), Global Commodities (energy trading) and finally International Power Generation (Russia and Brazil).

Active: Europe, Russia and Brazil

P/E: -3.2

Contrarian analysis of Uniper 2017

The P/E of Uniper is awful with -3.2 due to losses but the P/B is looking ok with 0.9 which in the end still gives a no from Graham. The earnings to sales and ROE are meaningless due to the losses but the book to debt ratio is down at 0.3 which is low but not unusual.
In the last four years they have had a negative yearly revenue growth in the size of -8.2% which gives us a motivated P/E of 8 and Uniper is overvalued by the market today.
Insanely enough they pay a dividend in the size of 3.3% which in my book should never be done when you are showing losses. 

Conclusion: Uniper is showing a difficult year followed by a difficult year followed by a... If one goes back in their "history" then they have made  losses for the last four years. Not a good sign. Graham says no to this and so do I. I want to see some actual results and not only an increasing share price to make me happy and to make me even consider buying more shares. I will remain as a shareholder though.

No comments: