German holding companies overview
This was posted after a thread on X by Orsetto
https://twitter.com/shot_change/status/1694249292293148887
This is a quick note (not emailed).
Blue cap AG:
Market cap 90 millions, Nav 136.2 millions.
in H1 2023 they did 11.5 million in adjusted EBITDA and 145 million of revenue.
“As an investment company, Blue Cap AG invests in particular in niche SMEs with revenue of between EUR 30 million and EUR 80 million. The companies in the Blue Cap Group evolve independently and each pursue their own growth strategies, supported by the holding company’s cross-industry expertise.”
Looking at the portfolio, they seem a bit cyclical, so I would pay 5 times earnings max.
They do many movements, buys, sales, and even small capital increases. They follow a value mindset and transformation and improvement framework. Therefore book value per share increased well since coming out of the crisis. It’s definitely a company type to buy in a doomsday 2009 scenario.
MBB SE:
market cap 440 millions, net cash 373! Ebitda 60
The business seems more countra cyclical than Blue cap (at a glance).
Book value per share did ok during the crisis before improving greatly since. The company sees reasonably cheap, and a further dive on the quality of management would be required.
Indus Holdings:
Market cap 600 million, Net income 90 millions
There is some cyclicality in the large portfolio, but also technicality
Good performance including the financial crisis.
GESCO:
Market cap 290 million, 582 million in revenue, 33 millions in profit
The subsidiaries are quite cyclical, with a large resource segment, notably Dorrenberg steel.
Book value development is.. OK
BAVARIA Industries Group AG
Market cap 394 million, revenue 112 million, profit 8 million
Another set of assets to dream for:
I don’t really see the value unless there is net cash.
Deutsche Beteiligung AG: (Beteiligung means participation)
Market cap 587m, estimated PE 5.5
not an exciting portfolio
Book value per share is not that great for me
Conclusion:
These companies are not really for me. In terms of quality, it’s not crazy. In terms of management, I could not evaluate the management that quickly. But I am not really interested. I think MBB is the most interesting quality wise.