Buzzi Unicem RNC decreases by 1.6 per cent, P/E improves to 7.4

Buzzi Unicem RNC decreases by 1.6 per cent, P/E improves to 7.4
Published: 03 June 2008

Buzzi Unicem RNC , Italy’s eighth largest construction, engineering & materials company by market capitalisation, decreased 20 Eurocents (or 1.6 per cent) to Euro12.73. Compared with the MIBTEL Index which fell 351 points (or 1.4 per cent) on the day, this represented a relative price change of -0.2 per cent. As a result of the price decline the Price/Earnings multiple based on trailing twelve months earnings has improved to 7.4; the stock has a value percentile rank of 87.9 or rank of 11 out of 91 stocks with earnings.

Volatility: The stock traded between an intraday high of Euro12.90 and a two-day low of Euro12.65.

Moving Average Price (MAP): The price to 200-day MAP ratio is 1.05, a bullish indicator. In the past 200 days this ratio has exceeded 1.05 five times suggesting further upside. The stock is trading above both its MAPs at Euro12.08 for the 200-day MAP and Euro11.44 for the 50-day MAP, another bullish indicator. In the last three months the number of rises outnumbered falls 36:24 or 1.5:1.

Relativities: Since open its percentile rank in the Italian market was 38. In the Italian market of 395 stocks, the stock has a six-month relative strength three months and 93 for one month.

Volume and Turnover Period: There were 28,109 shares worth Euro357,828 (US$555,116) traded. The volume was 0.3 times average trading of 100,817 shares. The turnover rate in the 12 months to date was 103.3 per cent (or a turnover period of 11 months). This average length of ownership of the stock at 0.7 times the average holding period of 1 year 3 months for stocks in the All STARS Index suggests a slightly larger number of speculators on the share register, making it less safe for long-term investors.

Annual Report for the year ended December 31, 2006 (year-on-year comparisons with previous corresponding period)-

Favourable Changes: total revenue up 9.1 per cent to Euro3.3b (US$4.4b); net profit growth 41.5 per cent to Euro417.5m (US$550.8m); EPS growth 34.6 per cent to Euro1.7 (US$2.3); interest cover up 332.9 per cent to 15.7; EBIT Margin up 13.8 per cent to 21.9 per cent; a track record of profits in four of the last four years; total debt to net tangible assets down from 90.8 to 65.4 per cent; total liabilities to operating cash flow down 36.1  per cent to 5: this compares unfavourably with Joseph Piotroski benchmark of four; debt to equity down 26.0  per cent to 0.5; total liabilities to total assets down 7.9 per cent to 0.5; current ratio up six per cent to 2.2; NTA per share up 7.3 per cent to Euro9.2 (US$12.1).