Today, we decided to present you with a brief analysis of cash per share of Croatian companies.
In February, Croatian companies published their preliminary FY results, so we decided to update our cash per share analysis. The analysis is done in order to see the strength of the balance sheet and how liquid selected Croatian companies are. This figure as the percentage of a company’s share price can give us more insight on the company’s strength on returning the money to shareholders (either through dividends or buybacks), paying down debt etc.
Cash per Share of Croatian Blue Chips (HRK)
It is important to note that looking at solely cash per share of a company could lead to misleading conclusions without also taking into consideration the company’s indebtedness, which you can find here.
A high level of cash per share indicates a solid performance of the company, reinsuring the shareholders that the company is operating with “enough room” to cover for any potential difficulties and that the company has adequate capital.
Cash per Share as a Percentage of the Current Share Price
As visible in the graph, of the selected companies, Končar operates with the highest cash per share as a percentage of their current share price of 47.9%, while their cash per share amounts to HRK 321.12. Adris (pref.) comes next with 41.9%. Arena Hospitality with 25.8% is third on the list. HT and Valamar Riviera follow with 20.2% and 18.3%, respectively.
On the flip side, Optima Telekom has the lowest cash per share of HRK 0.12, which translates into 5.7% of its current share price. Meanwhile, Maistra has the lowest cash per share as a percentage of their current share price (0.85%).
In the graph below you can see the cash position of selected Croatian companies as of end September. As visible from the graph, two Croatian companies breach the billion HRK mark – HT with HRK 3bn and Adris with HRK 2.77bn, while Končar is at HRK 820m.
Cash Position of Croatian Blue Chips (HRK m)*
*Cash and short term financial assets (from FY 2020 reports)