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%.
Pomponio's multipliers against the 2007 figures are generally smaller than the regional averages of builders and construction material producers. Against the offering price, the company would seem overvalued only from the perspective of the sales multiplier.
Pomponio intends to sell 14.6 million new shares at a price of 3.25 RON via a public offering, but aims to raise around 13m euros from investors for 25% of its share capital.
The offering is handled by EFG Eurobank Securities brokerage, whilst subscription can be made through Bancpost branch network.
In 2008, Pomponio expects turnover to advance by 55% and reach over 140m RON (38m euros).
In the first three months of this year, the builder reported 13% higher sales, to 18.4m RON (5m euros). The company is carrying out investments worth more than 30m euros in real estate projects in Sebes and Alba-Iulia, and intends to increase output on segment of metal structures, in the wake of investments worth 3.5m euros.
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