Today, we decided to present you with a brief analysis of cash per share of Croatian companies.
In April, Croatian companies published their preliminary Q1 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.
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 48.6%, while their cash per share amounts to HRK 337.6. HT Adris (pref.) comes next with 34.6%. Arena Hospitality with 21.7% is third on the list. HT and Valamar Riviera follow with 21.3% and 14.7%, respectively.
On the flip side, Optima Telekom has the lowest cash per share of HRK 0.03, which translates into 0.5% of its current share price. Meanwhile, Maistra has the lowest cash per share as a percentage of their current share price (0.2%).
In the graph below you can see the cash position of selected Croatian companies as of end March 2021. As visible from the graph, two Croatian companies breach the billion HRK mark – HT with HRK 3.24bn and Adris with HRK 2.33bn, while Končar is at HRK 863m.
Cash Position of Croatian Blue Chips (HRK m)*
*Cash and short term financial assets (from Q1 2021 reports)
Yesterday, CROBEX noted a solid increase of 1.24%, closing at 1,959.58 points.
CROBEX noted a very solid increase yesterday of 1.24%, marking a continuation of an almost uninterrupted positive sentiment on the Zagreb Stock Exchange in 2021. We note that since the beginning of the year, the index is up by as much as 12.7% and is converging towards the 2,000-point mark. To be specific, the index needs a 2% increase to reach the mentioned mark.
CROBEX was last time seen above the 2,000 point mark back in February of 2020, after which a sharp decrease followed (outbreak of the pandemic). The index plummeted to as low as 1,364.98 back in March, after which a recovery followed. Since the March 2020 bottom, the index increased by as much as 43.6%, while compared to compared to the beginning of the 2020, the index is down by 2.9%. This does not surprise much given the high exposure of the index to the tourism sector.
When observing the index constituents since the beginning of the year, 13 constituents are in green, 2 are flat, while 3 are in red. Of the top gainer, Atlantska Plovidba by far leads the list with a YTD increase by as much as 160%. As a reminder, the company showed a very solid Q1, during which the average daily freight rate increased by c. 72% to USD 12,908 per day. Meanwhile, 9 constituents noted a double-digit YTD increase.
YTD Performance of CROBEX Constituents
To put things into a perspective, the deals account for 6.4% of the company’s consolidated 12m sales.
AD Plastik Group published an announcement on the ZSE stating that they have sealed new deals with the VW Group worth EUR 7.5m for the Russian market with an estimated project duration of eight years.
For the European market, new deals have been sealed with the Stellantis Group with a total value of EUR 2.3m, and an estimated project duration of seven years.
To put things into a perspective, the deals account for 6.4% of the company’s consolidated 12m sales.
To read more about AD Plastik’s deals signed in 2021, click here.