Monday, April 16, 2018

Analysis of Fugro 2018


Logo of Fugro 2017


Company: Fugro 

ISIN NL0000352565 | WKN A0ET3V 

Business: A Dutch geotechnology company. They still have their four subunits: Geotechnical (resolve geotechnical problems offshore, nearshore and onshore), Survey (all kind of offshore and geospatial surveys for the development of oil and gas platforms), Subsea Services (repair, construction etc.) and Geoscience (seismic and seabed databases for the exploration of new projects). 

Active: World wide in 60 countries. 

P/E: -5.9

Here you can find the previous analysis of Fugro 2017.

Contrarian analysis of Fugro 2018 with P/E, P/B, ROE as well as dividend.

The P/E for Fugro is negative -5.9 due to losses but the P/B is however good with 1.3 still it gives a clear no go from Graham. The earnings to sales as well as the ROE is, of course, also negative and the book to debt ratio is at 0.62. They are burning their retained earnings from the golden years.
In the last 5 years they have had a negative yearly revenue decrease of -9.2% which is awful and this therefore give us a motivated P/E of around 8 which means that the market may be overvaluing Fugro.
They pay, since a long time now, no dividends which I find utterly wise.

Conclusion: Graham say no and so do I. The only good thing is the P/B value and that is by far not enough for making an investment. We would need to see a turn before any more money is invested into Fugro and clearly we are not yet there... if ever. I remain a grumpy shareholder. How I wish that I would not be forced to write that all the time.

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