Friday 8 May 2020

Analysis of Tessenderlo 2020

Company: Tessenderlo 

ISIN BE0003555639 | WKN 852064

Business: A Belgian chemical company. They currently have three operating segments : Agro, Bio-Valorization, Industrial Solutions and finally T-Power.

Active: 21 countries and 100 locations.

P/E: 11.4

To find out more concerning Tessenderlo then please go to analysis of Tessenderlo 2016.

The P/E of Tessenderlo good with 11.4 and the P/B is also good with 1.3 which gives a go from Graham. Earning to sales are so, so with 6% and the ROE is on the low side with almost 12% while the book to debt to book ratio is acceptable with 0.8.
In the last five years they have shown a yearly revenue increase of 1.9% which is not very good but still it is in the right direction and therefore gives us a motivated P/E of around 9 to 12 which means that Tessenderlo is today fairly valued by the market.
They pay out no dividends.

Future: Agriculture and let us call it upcycling, water treatment and energy. All if it has long term future as long as they can keep up with competitors.

Conclusion: Graham is ok with it and personally I think it is a good moment to pick up some more shares in Tessenderlo.


Garry said...

Hi. Long time, no see. I still am a fan of Tessenderlo. Underappreciated stock and way down from their ATH. But better diversified, better capitalised, better managed than ever. I don't think they will ever pay dividends, he rather keeps investing. Bought gas power plant, looking to build new one...

Fredrik von Oberhausen said...

Hi Garry! It has indeed been a long time!

I agree on the dividends. He will use it to expand the business and I do not mind him doing that.