IVA International Fund (Trades, Portfolio) acquired four new holdings in the second quarter. They are Fanuc Corp. (TSE:6954, Financial), Euler Hermes Group SA (XPAR:ELE, Financial), Yokogawa Electric Corp. (TSE:6841, Financial) and Jardine Lloyd Thompson Group PLC (LSE:JLT, Financial).
IVA International was established in 2008 by International Value Advisers and is managed by Charles de Lardemelle and Charles de Vaulx (Trades, Portfolio). The fund seeks long-term growth of capital and invests in a variety of securities and asset classes from markets around the world. The fund utilizes in-house, fundamental research conducted by analysts to aid in their decision-making process.
Fanuc
In Fanuc, the fund purchased 178,300 shares for an average price of 16,704 yen ($161.12) per share. The transaction had an impact of 1.44% on the portfolio.
Fanuc is a Japanese company that manufactures factory automation systems and robots. It has a market cap of 3.4 trillion yen with an enterprise value of 2.6 trillion yen. It has a price-earnings (P/E) ratio of 24.1 with a forward P/E of 33.4. Its price-book (P/B) ratio is 2.6, and its price-sales (P/S) ratio is 6.1.
GuruFocus ranked Fanuc’s financial strength 10 of 10. Its Piotroski F-Score is 4, indicating a stable financial condition. Its Altman Z-Score is 15.2, placing it in the safe zone. The company has no debt.
GuruFocus ranked the company’s profitability and growth 7 of 10. Its operating margin is 33.2%, and its net margin is 25.14%. It has a return on equity (ROE) of 10.5%, ranking it above 66% of companies in the global diversified industrials industry. The company’s return on assets (ROA) is 9.24%, ranking it above 85% of companies in the industry.
Among the gurus invested in Fanuc, de Vaulx is the largest shareholder.
Euler Hermes
In Euler Hermes, the fund purchased 98,960 shares for an average price of 79.86 euros ($89.32) per share. The transaction had an impact of 0.41% on the portfolio.
Euler Hermes, a French company, provides trade-related credit insurance solutions for small businesses to multinational companies. It has a market cap of 3.1 billion euros with an enterprise value of 2.8 billion euros. It has a P/E of 10.8, a P/B of 1.3 and a P/S of 1.2.
GuruFocus ranked Euler’s financial strength 7 of 10. Its Piotroski F-Score is 5, indicating a stable financial condition. The company’s cash-debt ratio is 2.37, barely below the industry median of 2.41.
GuruFocus ranked the company’s profitability and growth 6 of 10. Its operating margin is 14.12%, and its net margin is 11%. It has an ROE of 11.4%, ranking above 69% of companies in the industry. Its ROA is 4.5%, ranking above 80% of companies in the industry.
IVA International is the sole investor in the company among the gurus.
Yokogawa Electric
In Yokogawa, the fund purchased 224,300 shares for an average price of 1,177.11 yen per share. The transaction had an impact of 0.13% on the portfolio.
Yokogawa is a Japanese electrical engineering and software company. Its products include production control systems, test and measurement instruments, pressure transmitters, flow meters, oxygen analyzers, fieldbus instruments, manufacturing execution systems and advanced process control. It has a P/E of 12.4, a P/B of 1.5 and a P/S of 0.8.
GuruFocus ranked its financial strength 7 of 10. Its Piotroski F-Score is 4, indicating a stable financial condition. Its Altman Z-Score is 3.03, placing it in the safe zone. The company’s cash-debt ratio is 1.24, above the industry median of 1.12.
GuruFocus ranked the company’s profitability and growth 6 of 10. Its operating margin is 9.3%, and its operating margin is 6.8%. It has a ROE of 12%, ranking it above 71% of companies in its industry. Its ROA is 6.6%, ranking it above 74% of companies in the industry.
Matthews Japan Fund (Trades, Portfolio) is the largest shareholder in Yokogawa, followed by de Vaulx.
Jardine Lloyd Thompson
In Jardine Lloyd Thompson, the fund purchased 4,444 shares for an average price of 8.81 pounds ($11.72) per share.
Jardine Lloyd Thompson is headquartered in London. It provides insurance, reinsurance, employment-related advice and brokerage services. It has a market cap of 2.2 billion pounds with an enterprise value of 1.9 billion pounds. It has a P/E of 35.02 with a forward P/E of 17.6. Its P/B is 7.3, and its P/S is 1.8.
GuruFocus ranked Jardine Lloyd Thompson’s financial strength 5 of 10. Its Piotroski F-Score is 5, indicating a stable financial condition. Its Altman Z-Score is 1.7, placing it in the distress zone, which implies the possibility of bankruptcy in the near future. Its cash-debt ratio is 1.4, below the industry median of 9999.
GuruFocus ranked its profitability and growth 8 of 10. The company’s operating margin is 10.9% and its net margin is 5.3%. Its ROE is 20.6%, ranking it above 84% of companies in the industry. Its ROA is 2.7, ranking it above 60% of companies in the industry.
Paradigm Asset Management Co. is the largest shareholder in Jardine Lloyd Thompson.
Disclosure: I do not own stock in any companies mentioned in the article.
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