Saturday 26 April 2014

Analysis of Kamaz

Kamaz a Russian vehicle manufacturer

Company: Kamaz

Business: A Russian vehicle manufacturer. Their product portfolio included first and foremost Trucks and secondly Buses but they also have Trailers, Tractors, and parts such as Chassis, Engines and Power Units.

Active: Today over 85% of their sales are made in Russia. The other 15% is mainly to neighbours such as Ukraine (maybe not so much right now), Kazakhstan, Azerbaijan as well as Turkmenistan.

P/E: 4.1

Comment: This analysis is based on the years 2008 to 2012 and they will soon come out with the full year 2013. More interesting though... German Daimler (analysis of Daimler) owns 11% of the shares in Kamaz and on Kamaz homepage they are talking about a more intensified cooperation with Daimler in the future as well as mentioning increased export as being part of their strategy for increased revenue for 2020.

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

The P/E of Kamaz is excellent with 4.1 and the P/B is great with 0.7 which gives us a very clear buy from Graham. Their earnings to sales are ok with 5% and the ROE is also ok with almost 16%. The book to debt is surprisingly low for being a Eastern company with only 0.9. Usually they tend to have much less debt but 0.9 is still a very good value. In the last five years they have had a yearly growth of 4% which is fully acceptable and this then gives us a motivated P/E of 12 to 16 which means that Kamaz is undervalued on the market today. They pay a small dividend of only 2.1% however that only represents 8.5% of their earnings so plenty of space upwards!

Conclusion: I must say that I am impressed by the figures of this company and the fact that Daimler is sitting on 11% of it already adds a significant amount of additional value. The P/E, P/B and ROE are all great values and the growth has been fully acceptable in the last couple of years which means that Graham also says yes. I could consider to step in as shareholder in Kamaz today. It will be interesting to see how 2013 were for them!

If this analysis is outdated then you can request a new one.

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