Tuesday, February 7, 2023
HomeValue InvestingAll Danish half 16 – Nr. 151-160

All Danish half 16 – Nr. 151-160


And on we go relentlessly. One other 10 randomly chosen Danish shares, with solely 16 extra to go. This time, 3 of them made it onto the preliminary watch record. Take pleasure in !!

151. Nordea

Nordea is a 36 bn EUR market cap “full service” financial institution and asset supervisor lively within the Nordics. As many different Scandinavian monetary establishments, Nordea is doing fairly properly in comparison with its European friends, managing ROEs of round 7-11% over the previous 10 years.

The long run share worth improvement is nonetheless fairly disappointing, displaying little to no worth creation:

Nordea

The largest attraction is clearly the dividend yield which stands at at present 7% or so. Valuation clever, Nordea trades at 11,5 x P/E and ~1,2x P/B, reflecting its steady earnings. Among the many sharholders, probably the most fascinating is Nordic Activist investor Cevian who’s on board since 2018.

Nonetheless not a lot appears to have modified. I’m not but satisfied that investing into banks is one of the best alternative proper now, subsequently I’ll “move”.

152. Djursland Financial institution

Djursland Financial institution is a 110 mn EUR market cap regional financial institution. With a P/E of seven,4x and P/B of 0,6x, the inventory appears low-cost, however the dividend yield is just round 2%. Djursland truly managed to extend earnings over the previous few years, however nonetheless I’m not that a lot all for regional Danish banks. “Cross”.

153. FLSmith & Co

FLSmith is a 1,4 bn EUR market cap firm that makes a speciality of gear for the Cement and Mining business. The long run inventory chart appears fairly miserable:

FLSmith

The inventory at present appears fairly low-cost at ~10x 2022 earnings. margins on this enterprise are fairly low (EBIt margin ~5%) in addition to return on capital. Mining is round 75% of the enterprise.

This might truly grow to be fascinating once more, contemplating the required mining for the Vitality transition/electrification. One other fascinating side is that FLSmith took over the (loss making) Mining actions from Thyssen Krupp not too long ago.

General, regardless of the comparatively mediocre profitability, I feel this could possibly be fascinating. “Watch”.

154. Hove

Hove is a ten mn EUR market cap firm that develops “superior lubrication options” which seems like a excessive tech model of Fuchs Petrolub.

In distinction to different 2021 IPOs, Hove truly has gross sales and makes a small revenue.  Their monetary studies sow quite a lot of offshore wind mills and so they appear to supply answer for wind.

Nonetheless, 6M 2022 didn’t look so good and the inventory is simply too small to hassle. “Cross”.

155. Nordic Shipholding

Nordic Shipholding is a tiny, 5 mn EUR firm someway lively in transport. During the last 5 years they solely have proven losses. “Cross”.

156. Matas

Matas is a 380 mn EUR market cap retail chain that i”engaged in a retail chain promoting magnificence, private care, and well being merchandise”. It appears to be lively solely in Denmark. At a primary look, it appears fascinating. Enterprise appears to be fairly steady (thus far) and the inventory appears low-cost at 10x P/E.

Nonetheless, the long run chart doesn’t look very constructive:

Matas

As retail isn’t one in all my robust areas, I’ll “move”.

157. Wirtek

Wirtek is a 15 mn EUR “software program outsourcing” firm that seemed fairly dangerous for 10 years earlier than it acquired a second life throughout Covid:

Wirtek

The corporate has grown for the final couple of years and is now worthwhile. So far as I perceive it, they’re extra an outsourcing service supplier than a software program firm that writes its personal code. The vast majority of Workers appears to be employed in Romania. They information in direction of 9 mn EBITDA (mid level) which might be ~12x EV/EBITDA, however at a progress fee of 40%. This appears fascinating. I’ll put them on “watch”.

158. Intermail

Intermail is an 8 mn EUR market cap firm that “that helps its prospects create extra leads, extra gross sales and make prospects loyal, in order that prospects’ lifetime worth will increase. The corporate works with communication on all fashionable platforms corresponding to Google, Fb, LinkedIn, Instagram and ensures that market communication throughout varied digital and analog distribution channels creates the best doable impact”.

The corporate truly has some gross sales and has grow to be worthwhile, nonetheless present revenues are just one/5 of the extent 10 years in the past. Doesn’t look very fascinating, “move”  in the intervening time.

159. Københavns Lufthavne

The interpretation of this firm means “Copenhagen Airports” and that is what this 6,6 bn EUR market cap firm does. So far as I perceive, ~98% are owned by the Authorities and free float is tiny. Valuation doesn’t make sense at first sight (50x EV/EBITDA). “Cross”.

160. Danke Financial institution

With a market cap of 14 bn EUR market cap, Dankse Financial institution is clearly one of many bigger Nordic Banks. A fast take a look at the chart reveals, that much like many different banks there was little worth creation over the previous 22 years:

At 6,7 xP/E and 0,7x P/B (Trailing), Danske appears low-cost, nonetheless for 2022, Danske will probably e book a big loss. This has to do with a scandal from the previous:  Danske was discovered responsible to facilitate cash laundering primarily through its Baltic subsidiaries in 2017/2018. In 2022 they lastly booked a 14 bn DKK reserve to settle the problems. On high, additionally they wrote down the Goodwill of an acquired Pension enterprise.

On the plus facet, the core banking enterprise appears to get better. The largest shareholder is MP Moeller, the mum or dad firm of Maersk with a stake of 21%. Personally, I discover this a probably extra fascinating case because it could possibly be some sort of “particular scenario restoration” play, subsequently Danske goes on “watch”.

 

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