For today, we decided to revisit the net debt/EBITDA ratio of Slovenian blue chips.

As all Slovenian blue chips published their Q1 results, we can observe an updated analysis on how indebted the companies are by comparing their net debt to EBITDA and percentage of debt financing. Note that we are observing only non-financial companies.

Net debt/EBITDA (TTM)

Among the observed companies Cinkarna Celje and Krka operate at a negative net debt, meaning that their cash positions exceed their financial debt. Consequently, their net debt/EBITDA is negative. Luka Koper follows with a 0.31x net debt/EBITDA ratio, meaning that their recorded EUR 63.4m TTM EBITDA is triple the amount of their net debt. Petrol has recorded a TTM EBITDA of EUR 177.1m, which is about half of their net debt. Telekom Slovenije stands at a ratio of 1.82x, also having the highest EBITDA of the observed companies with EUR 208.2m.

Turning our attention to the capital structure we see that all companies have more equity than debt. Cinkarna Celje leads the list with 99.9% of equity followed by Krka with 99.3%. Telekom Slovenije has the most debt in their capital structure, with 41% of debt compared to equity.

Capital Structure of Slovenian Companies

Yesterday, ZVTG decreased by 3.3%, while POSR decreased by 1.6%.

Triglav and Sava Re went ex-date yesterday. Triglav’s share price decreased by 3.31%, closing at EUR 34 per share. Meanwhile, Sava Re noted a decrease of 1.6%, closing at EUR 26.3 per share.

As a reminder, the shareholders of Triglav approved a dividend of EUR 1.70 per share, which translated into a dividend yield of 5.3%.

The shareholders of Sava Re, on the other hand, approved a dividend of EUR 0.85 per share, which translated into a dividend yield of 3.6%.

We note that both insurers did not pay out a dividend in 2020, due to a regulatory ban. However, this year both insurers decided to pay out a dividend, despite the recommendation by the regulator to suspend dividends until 30 September 2021.