For today, we decided to present you with a brief analysis of cash per share of Croatian companies.
In April, most Croatian companies published their Q1 results, while the market observed a slight recovery compared to a sharp decrease seen in March. As a result, we decided to revisit (update) our cash per share analysis, with Q1 figures 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.
It is important to note that looking at solely cash per share of a company could lead to misleading conclusions if we did not also take into consideration the company’s indebtedness. To see the Q1 indebtedness of Croatian companies click here.
Cash per Share of Croatian Blue Chips (HRK)
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 65.3%, while their cash per share amounts to HRK 296.5. Note that the company witnessed a high share price decreases YTD of 28.5%, closing yesterday’s trading session at HRK 454 per share. Arena Hospitality Group comes next, whose cash per share accounts for 52.5% of the current share price. On the flip side, Maistra’s cash per share amounts to HRK 3.7, which accounts for 1.7% of the company’s share price.
Cash Position of Croatian Blue Chips (HRK m)*
*Cash and short term financial assets (from FY 2019 consolidated reports)