Analysis of Immofinanz 2015

Company: Immofinanz 

ISIN AT0000809058 | WKN 911064  

Business: An Austrian real estate company. They have decreased their focus and are now mainly working with retail, office and logistics.

Active: Europe and more specifically: Austria, Germany, Russia, Poland, Czech Republic, Slovakia, Hungary and Romania.

P/E: 13.1

Here you can find the previous analysis of Immofinanz. 

This company was analysed due to a request from Matthias posted on the Analysis Requests page. 

The P/E is excellent with 13.1 and also the P/B is great with 0.6 which gives a very clear buy from Graham. The earnings to sales look convincing with 28% but the ROE is bad with not even 5%. The book to debt ratio is looking good with 0.8.
In the last five years they have had a yearly revenue growth rate of -2.2% which is awful and this gives us a motivated P/E of around 8 to 10 which means that Immofinanz is slightly overvalued on the market today.
They have also decided to pay out no dividends which I do not like at all. They have a share buy back program which is good but they keep the shares in the books which I do not like. They claimed that they would be cancelled but they were still in there in the last quarter report. There was also recently an offer (now expired) for the shares in the size of 2.8 € which is the reason for why they temporarily jumped up to that level and has now fallen back to a more appropriate valuation.

Conclusion: Graham says yes to Immofinanz but I am sceptical. Due to them having earnings in several eastern European countries as well as in Russia they have had large losses due to currency lately. So the P/E and P/B looks good but ROE and dividends does not so I would not consider to invest in Immofinanz today.

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