Wednesday 17 September 2014

Analysis of Industrivärden 2014

Industrivärden, a Swedish investment company

Company: Industrivärden

ISIN SE0000190126 | WKN 886939      

Business: A Swedish investment company. Their focus is on the Nordic market. They currently have nine bigger holdings: Ericsson, Handelsbanken, ICA Gruppen, Sandvik, SCA, Skanska, SSAB, Volvo and Kone.

Active: In the Nordic countries.

P/E: 5.1

Here you can find the previous analysis of Industrivärden.

Contrarian values of P/E, P/B, ROE as well as dividend for Industrivärden

The P/E of Industrivärden is excellent with 5.1 and the P/B is fully acceptable with 1 which gives us a very clear buy from Graham. The earnings to sales are excellent with 95% which comes from it being an investment company. The ROE is also excellent with over 20%! The book to debt ratio is great with 2.9.
In the last five years they have had a yearly negative growth of -9.5% so 5 years ago was an excellent year for them. This gives us a motivated P/E of 8 to 13 which means that they are undervalued on the market today.
They pay a very nice dividend of 4.1% which only corresponds to 21% of their earnings so there should be little fear of them not being able to at least keep that up.

Conclusion: Graham says yes to Industrivärden and so do I. They are invested in solid Nordic companies that will keep generating dividends. Maybe they are a bit too boring if that is possible... Still the P/E, P/B, ROE and dividend they are all good!

Industrivärden will remain on the Stocks of Interest list but they moved down two positions if I remember correctly.

If this analysis is outdated then you can request a new one.

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