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Invesco European Growth Fund’s Top Third Quarter Holdings

October 03, 2013
Monica Wolfe

Monica Wolfe

118 followers
During the third quarter the Invesco European Growth Fund bought three new stocks bringing the fund’s total number of stocks to 75. Invesco European’s portfolio is valued at $978 million as of the third quarter.

The following five companies represent the largest positions Invesco European Growth Fund maintain.



Aryzta AG (XSWX:ARYN)

Invesco European Growth Fund’s largest holding goes to the Switzerland-based Aryzta AG. The fund holds 492,580 shares of the company’s stock which represents 0.54% of the company’s shares outstanding and 3.1% of Invesco’s total portfolio.

The fund made no alterations of their positions during the third quarter.

Invesco European’s historical holding history:

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Aryzta is a global food business with a leadership position in specialty bakery. The company is based in Zurich, Switzerland with operations worldwide.

Aryzta’s historical revenue and net income:

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The company recently released its full year results for the year ended July 31, 2013, which reported:

· Group revenue increased 7% to €4.504 billion.

· Group EBITDA increased by 7.1% to €475.6 million.

· Diluted net profit increased 9.6% to €319.1 million.

· Diluted EPS increased 6.8% to 360.3 cent.

The analysis on Aryzta reports that the revenue has slowed over the past year, that the dividend yield is nearing a 5-year low and the price is near a 5-year high. The company has also issued €14.755 million of debt over the past year.

Aryzta has a market cap of €5.66 billion. Its shares are currently trading at around €61.65 with a P/E ratio of 30.58, a P/S ratio of 0.97 and a P/B ratio of 1.74. The company had an annual average earnings growth of 34.2% over the past five years.

Compass Group PLC (LSE:CPG)

Invesco’s second largest position is in the U.K.-based Compass Group. The fund owns a total of 1,764,340 shares of the company’s stock which makes up for 0.10% of their total shares outstanding. Their position in Compass also represents 2.5% of the fund’s total portfolio.

During the third quarter Invesco reduced their position -7.71%. The fund sold a total of 147,396 at an estimated average quarterly price of £8.71, and since their sell the price per share has dropped an estimated -4.7%.

Invesco European’s historical holding history:

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Compass Group provides food and a range of support services to customers in the workplace, schools and colleges, hospitals, at leisure and in remote environments.

Compass Group’s historical revenue and net income:

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The company recently released a statement reporting the company’s financial position which reported:

· The company has committed around £105 million on acquisitions year-to-date.

· They have continued with their £400 million share buyback program. As of Sept. 25, 35.5 million shares have been purchased for cancellation for £296.3 million.

· Predicted organic revenue growth is expected to be over 4%.

The analysis on Compass Group reports that the company’s operating margin is expanding, its price is nearing a 10-year high and the company has issued £171 million of debt over the past three years.

The Peter Lynch Chart suggests that Compass Group is currently overvalued:

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Compass Group has a market cap of £15.33 billion. Its shares are currently trading at around £8.50 with a P/E ratio of 25.97, a P/S ratio of 0.92 and a P/B ratio of 4.63. The company had an annual average earnings growth of 10.9% over the past ten years.

Prosafe SE (OSL:PRS)

The fund’s third largest position is in Norway-based Prosafe SE. The fund currently holds on to a total of 2,304,988 shares of the company’s stock. Their position makes up for 0.98% of the company’s shares outstanding as well as 2.4% of Invesco’s total assets managed.

The Invesco European Fund has not changed their holdings since 2011Q3.

The fund’s holding history as of the third quarter:

1380317433188.png

Prosafe is an owner and operator of semi-submersible accommodation/service rigs. The company operates globally and employs approximately 570 people worldwide. The company is headquartered in Larnaca, Cyprus.

Prosafe’s historical revenue and net income:

1380735745071.png

The company announced today that they had agreed to a contract extension for Safe Bristolia, Regalia and Safe Lancia. This extension is for the firm period for the provision of the Safe Bristolia accommodation support vessel at the Elgin-Franklin Facility in the British sector of the North Sea. The extension period is 61 days commencing mid-October 2013. This extension period is valued at approximately $15.9 million.

The Peter Lynch Chart suggests that the company is currently undervalued:

1380740211195.png

The analysis on Prosafe reports that the gross margin and operating margin have been in a long-term decline, the revenue has slowed down over the past year and that the dividend yield is at a 1-year high.

Prosafe has a market cap of kr11.53 billion. Its shares are currently trading at around kr48.86 with a P/E ratio of 12.61, a P/S ratio of 3.78 and a P/B ratio of 2.89. The company currently offers a dividend yield of 5.04%.

British American Tobacco PLC (LSE:BATS)

Invesco’s fourth largest position is in British American Tobacco where the fund currently holds on to 413,305 shares, representing 0.02% of the company’s shares outstanding and 2.3% of the fund’s total assets managed.

During the past quarter, Invesco increased their position in British American Tobacco 12.56% by adding a total of 46,117 shares to their stake. They purchased these shares at an estimated average quarterly price of £34.05 per share. The price has dropped about -3% since then.

Invesco European’s historical holding history:

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British American Tobacco PLC is a holding company that owns, directly or indirectly investments in the numerous companies constituting the British American Tobacco Group of companies. Its brand portfolio includes Dunhill, Kent, Lucky Strike and Pall Mall.

British American Tobacco’s historical revenue and net income:

1380741323317.png

The company recently announced that CTBAT International Limited has officially commenced operations. CTBAT is a joint investment of subsidiaries of China National Tobacco Corporation and British American Tobacco. This joint investment will own and manage worldwide international cigarette trademark State Express 555.

The Peter Lynch Chart suggests that the company is currently overvalued:

1380741953793.png

The analysis on British American Tobacco reports that:

· The operating margin is expanding.

· The dividend yield is close to a 5-year high.

· The company has issued £85 million of debt over the past year.

· Their revenue has slowed down over the past year.

British American Tobacco has a market of £60.85 billion. Its shares are currently trading at around £32.04 with a P/E ratio of 14.56, a P/S ratio of 4.04 and a P/B ratio of 8.09. The dividend yield of BATS stocks is at 4.30%. The company had an annual average earnings growth of 10.3% over the past ten years.

Reed Elsevier PLC (LSE:REL)

The fund’s fifth largest position is in Reed Elsevier. Invesco European holds on to 1,741,689 shares, representing 0.15% of the company’s shares outstanding and 2.3% of their total portfolio.

Invesco did not make any changes in their holdings on Reed Elsevier over the past quarter. They have not altered their holdings in the company since 2012Q4.

Invesco European’s historical holding history:

1380319601477.png

Reed Elsevier Group is a provider of professional information solutions. The company is owned equally by two parent companies, Reed Elsevier PLC and Reed Elsevier NV. The combined market capitalization of the two parent companies £18 billion and €22 billion, respectively.

Reed Elsevier’s historical revenue and net income:

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The company recently announced that their CFO Duncan Palmer has resigned. His resignation will be in effect as of Sept. 25, 2014, or an earlier date if Reed Elsevier so designates.

The analysis on Reed Elsevier reports that the company’s revenue has been in decline over the past three years, its dividend yield is at a 1-year low and its price is close to a 10-year high.

The Peter Lynch Chart suggests that the company is currently undervalued:

1380744291870.png

Reed Elsevier has a market cap of £9.81 billion. Its shares are currently trading at around £8.36 with a P/E ratio of 5.81 and a P/S ratio of 1.00. Reed Elsevier had an annual average earnings growth of 61.6% over the past five years.

You can check out Invesco European Growth Fund’s Third Quarter Portfoliohere.

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