Increasing the share price of an investment company MBB
The share price of medium-sized investment company MBB Industries AG attracted 25% to around 17 EUR. Visually, the price has more than doubled in a few months. The acquisition of Precision Engineering Claas GmbH and its consolidation in the consolidated figures of MBB from the second quarter of 2012 has almost doubled its consolidated sales and the profits disproportionately catapulted into the air. This reduces the valuations and analyst firms are only beginning to adapt their current numbers. Thus, Exchange Online raised its earnings estimates for 2012 and now expects 2.00 EUR (previously 1.40) for 2013 and 2.10 EUR (previously 1.50). Analysts also raised their estimates.
According to an EBIT margin of 8.5 percent in the third quarter, experts expect for the full year with a margin of 8.9 percent and increase its profit forecast per share from EUR 1.45 to EUR 1.84 and for 2013 of 1.71 EUR to 1.89 EUR. Let us take just the average of the two forecasts, and then we come to a profit of $ 1.92 per share for 2012 and for 2013 of EUR 2.00 EUR. At a current price of 17 EUR would result on this basis a PE ratio of 8.85 and a 2012er 2013er PER of 8.5. Let us compare this with other listed German investment companies:
Aurelius (Marktkap. EUR 384 million), 2013er E Ratio: 9.3
Dt. Investments (Marktkap. EUR 255 million), 2013er PER: 24.9
Gesco (Marktkap. EUR 217 million), 2013er PER: 9.9
Indus (Marktkap. million 1104 EUR), 2013er E Ratio: 8.7
MBB (Marktkap. EUR 112 million), 2013er PER: 8.5
The company would continue to follow this strategy. The dividend for 2012 will be of at least 1.50 EUR -- 1.80 EUR. This shows that the company MBB Industries, despite the strong price appreciation in the peer group, remains attractively valued and not too expensive. After the sharp increase in recent days, the share price of MBB Industries AG, continues to gain height. Due to the strong fundamentals and the continuing attractive valuation of the company it would not be worth it to wait for much lower prices. Long-term investors should be on the owner-MBB continue their joy.