Pomponio, the Alba Iulia-based construction firm, is trying to lure investors with a P/E ratio (price/earnings per share ratio) half the level of listed builders.
Pomponio Alba-Iulia (PMN), which is currently carrying out a public offering in view of floatation on the BSE, has a P/E ratio almost half the average level of the most important domestic issuers in the same domain listed on the Stock Exchange, based on the unconsolidated figures reported by the company this week.
As a result, at the offering price, 3.25 RON/share Pomponio's P/E ratio stands at 12.4, compared with the average P/E of builders on the Stock Exchange, which stands at over 22.
On the other hand, the builder's P/S indicator (price against sales), which stands at 2, is significantly higher than the average level of similar companies listed on the BSE (1.3).
This is also accounted for by the fact that Pomponio's net profit margin for 2007, 16.6%, is several times higher than that of analysed builders and is comparable to the profit margins of construction material producers on the Stock Exchange.
However, financial indicators are not the only aspect investors consider when deciding to invest. The market context is very important because a negative environment could bring investors short-term losses, as with Teraplast's offering.
On the operating side, the company doubled its income in 2007, to 8.8m RON (2.6m euros), partly because of the sale of a plot of land that brought the company a 0.5m RON gain.
Overall, Pomponio's income rose 4.5 times last year and reached 15.4m RON (4.6m euros), amid almost double turnover worth 92.7m RON (27.7m euros).
Industrial constructions and transport services hold the highest weight in the company's business, with over 72%, followed by concrete and prefabricated concrete slabs, with almost 25%.
Pompo
