Recent Sell – Allianz AG

I bought a few shares of Allianz AG in 2016 after the Brexit referendum. That was a good timing, because of the panic at the stock market. I sold that shares a few days ago, because I think, that the valuation of the company's shares are really high.

When I bought the shares, the P/BV was 0.85 and the P/S was 0.52, but now I calculate P/BV 1.31 and P/S 0.75. If I look at the historical data, I can only see such high values in 2007. So this two ratios show me, that it is better to realize my profit.

But what I would expect from the company if I hold the shares? Allianz increased it's revenue from €92.183 billion to €110.500 billion over the period spanning fiscal years 2007 to 2016. That's a compound annual growth rate (CAGR) of 0.89%.

Over the same 10-year period, the company's diluted earnings per share decreased from €17.71 to €15.00, which is a CAGR of -1.12%.

 I think that it's not so impressive from a company, so take a look at it's dividend.

The company increased it's dividend in the last 4 years, with a ten year CAGR 7.18%. The dividend yield is 4.12% with my selling price. (€184.35) The payout ratio increased in the last 10 years.

These numbers show me, that the company's numbers are stagnating, and I won't expect great long-term returns from it. It was a good value play for me, but at today's prices I think that I will find muh better investment opportunities for my money in the next few months.