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)

Aquila, the last constituent added to the BET index, aims to double its EBITDA in 5 years both through organic growth as well as acquisition. Acquisition-wise it will be focused on top brand manufacturers, complementary to the current portfolio and possible synergies at the distribution level.

Aquila the largest company in consumer goods distribution in Romania and the last added constituents into the BET index published its press release where the company elaborated its plan.

The Company aims to double its EBITDA in 5 years through both organic growth and acquisition. The company seeks to acquire top brand manufacturers, complementary to the current portfolio and possible synergies at the distribution level. Doubling EBITDA over the next 5 years will be an essential objective of Aquila’s strategy. Improving margins is one of the important directions in the Company’s strategy next to keeping the focus on developing its own brands. Currently, Aquila states it is focused on maximizing exposure to channels with higher growth rates and better margins such as HoReCa and gas stations.

Margins are expected to improve via both price and volume increases, especially in the current context of price evolution. Also, logistics activities are planned to help in warehouse management for an efficient improvement in input, storage and order preparation flows and value-added services.

Aquila key financials (H1 2021 vs. H1 2022, RONm)