Profit of Hungarian Shares in the Last 10 Years

I calculated the profit of the largest publicly traded Hungarian companies. I used the share prices from the end of 2007 as a starting point. So, it is before the Great Recession of 2008-2009, that's why, the beginning valuation is really high, and the profits are not so good for a ten year period. (If I would start from the end of 2008, it would show us much better profits.)

Data sources: Budapest Stock Exchange, Sectors and Industries from investing.com.


I found really interesting, that there are plenty of high dividend paying shares among the top of the table. The share price of Zwack, Emasz or Elmu changed only a little, but the high dividend brought good returns for the shareholders. That's why I like so much the dividend paying stocks.

Disclaimer: long ANY

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.

Recent Buy – TEVA - 2

A few days ago I wrote about my purchase of TEVA shares. The share price continued the falling, and I was thinking about the company's prospects. I think that the company's debt is managable on a long term horizont, but the short term financial ratios are not so good. That's why there are so many articles about the company's short term financial problems and the probability of bankrupcy. But I think that they can manage the short term problems and they will get large support from the Israeli Ministry of Economy.

I think that the black clouds will go away, but it needs long time. I bought a few more shares at $18.05. I know that it is a very risky investment, but I believe that the company worth more.

Full disclosure: Long TEVA.

Related Posts:

1. Recent Buy – Kroger
2. Recent Buy – TEVA

Coca-Cola – An Overvalued Dividend Aristocrat

Coca-Cola (KO) is a wonderful company and made many investor rich. KO has been increasing it's dividend since 1963. Everybody knows it's powerful brands and I think that it will be in the business in the next decades.

Because of the low interest rates more and more investors are looking for safe investments with a small, but stable yield. My opinion, that this reflects in the valuation of Coca-Cola. The dividend yield of KO is 3.27%, which is much higher than the yield of a bank account. But will it be a good investment?

KO has a 31.8 P/E ratio, which is much higher than the KO's five year average. (22.7)

The company's revenue decreased in the last five years from $48,017 million to $41,863 million. The diluted EPS decreased at the same time frame from $1.97 to $1.49. If this decreasing is not changing it will be more and more difficult to pay out such a high dividend. 

KO pays out $1.40 in the last financial year. The payout ratio of the company is 83.6%, so I think there is only a small space to increase it's dividend.

I think that the valuation is not reflecting the growth characteristics of Coca-Cola, so I won't buy it at today's prices.

Full disclosure: Long PEP.