Analysis of Tessenderlo

Company: Tessenderlo

ISIN BE0003555639 | WKN 852064

Business: A Belgian chemical company. They have five business units: Fertilisers (with potassium sulphate, liquid fertilisers and crop protection), Animal Nutrition (with animal feed, feed phosphates and feed ingredients), Construction (with Plastic Pipe Systems), Water treatment and finally Industrial Chemicals.

Active: They are present in 21 countries on 100 locations and the main focus is the US and Europe.

P/E: -9.2 (P/E5: even worse...)

Comment: Tessenderlo is currently owned to almost 28% by Picanol if you want to find out it then please see analysis of Picanol 2014.

The P/E for Tessenderlo is awful with -9.2 and the P/B is also far too high with 3.1 which gives a very clear no go from Graham. Due to negative earnings the earnings to sales are bad as well as the ROE. Their book to debt is uncomfortably high with 0.3 which is also one of the reasons for why they will have an extra shareholders meeting to discuss the issuing of more shares to try to bring in around 200 million more.
In the last five years they have had a negative yearly revenue growth of -3.1% which is awful. the motivated P/E ends up around 8 to 10 which means that it is over valued based on their previous result.
They pay no dividend which I do not like.

Conclusion: Graham definately says no to this company and looking at all the key data... so do I. The P/E is bad, the P/B is bad, the ROE is bad and they even do not pay any dividend. Usually this seems to be where many of my companies end up after I have bought them...

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