Today, we decided to present you with a brief analysis of cash per share of Slovenian Blue Chip companies.

We decided to update our cash per share analysis for chosen blue-chip companies in Slovenia ahead of the 9M reports. The analysis is done in order to see the strength of the balance sheet and how liquid the selected blue-chips are. This figure, cash per share, as a percentage of a company’s share price, can give us more insight into the company’s strength in returning the money to shareholders (either through dividends or buybacks), paying down debt, etc. We are excluding financial companies as this measure is not adequate.

Cash per Share of Slovenian Blue Chips (EUR)

*Data after taking into account Petrol’s share split of 20-to-1

A high level of cash per share could indicate a solid performance of the company, reassuring the shareholders that the company is operating with “enough room” and liquidity to cover any potential difficulties and that the company has adequate capital.

However, it is important to note that looking solely at cash per share of the company could lead to a misleading conclusion without taking into consideration the company’s whole cash and cash equivalents position, especially compared to the company’s short-term debt. This ratio is especially sensitive to stock split, as it basically increases the denominator numerous times, without any effect on the numerator. Consequently, we have included Petrol’s 20-to-1 share split in our analysis. Also, we note that Cinkarna, too, already conducted a corporate action of share split of 10-to-1 this year. Nevertheless, using this ratio as a percentage of the current share price can give investors a really insightful view.

Cash Per Share as a Percentage of the Current Share Price

As visible in the graph, out of chosen Slovenian companies, Luka Koper operates with the highest cash per share as a percentage of their current share price of 19.9%, while their cash per share amounts to EUR 59. It is closely followed by Cinkarna Celje with cash per share as a percentage of their current share price standing at 19.3%. Krka comes next with 10.2%, Petrol with 7.9%.

On the flip side, Telekom Slovenije has the lowest cash per share as a percentage of its current share price of 3.4%. Telekom Slovenije cash per share amounted to EUR 1.7, derived from the cash position amounting to EUR 11m.

Cash position of Slovenian Blue Chips (EUR m)