Spanish mutual fund azValor Iberia FI (Trades, Portfolio) acquired five new holdings in the second quarter. Among them are Nos SGPS SA (XLIS:NOS, Financial), Viscofan SA (XMCE:VIS, Financial) and Hispania Activos Inmobiliarios SA (XMCE:HIS, Financial).
AzValor Iberia is part of azValor Asset Management. The firm invests in undervalued equities with a long-term approach in both the Spanish and Portuguese markets. The firm’s two founding partners, Fernando Bernard and Beltran Parages, formerly worked at Spain’s Bestinver. Parages is azValor’s head of business development. Bernard serves as a portfolio manager along with Alvaro Guzman de Lazaro, another former employee of Bestinver. The firm was founded in 2015.
Nos SGPS
In Nos, the fund purchased 441,284 shares for an average price of 6.15 euros ($6.87) per share. The transaction had an impact of 4.5% on the portfolio and is the fund’s largest acquisition of the quarter.
Nos is a Portuguese media holding company. Its main assets include a satellite, a cable operator, an ISP, a mobile phone operator and a movie distributor. It also provides cable television services, cable Internet and VOIP. The company is a spinoff of Portugal Telecom.
The company has a market cap of 3.1 billion euros with an enterprise value of 4.23 billion euros. It has a price-earnings (P/E) ratio of 35.1, a price-book (P/B) ratio of 2.8 and a price-sales (P/S) ratio of 2.1.
GuruFocus ranked Nos’s financial strength 5 of 10. It has a Piotroski F-Score of 5, indicating a stable financial condition. Its Altman Z-Score is 1.5, placing it in the distress zone, which implies the possibility of bankruptcy in the near future. The company’s Beneish M-Score of -2.3 implies the company does not manipulate its financial records.
GuruFocus ranked the company’s profitability and growth 7 of 10. Its operating margin is 7.5% and its net margin is 5.7%. It has a return on equity (ROE) of 7.9% and a return on assets (ROA) of 2.8%, ranking above 54% of other companies in the industry.
The DCF Calculator gives the stock a fair value of 1.82 euros; it was trading at 5.96 euros on Monday.
The fund is the only investor among the gurus as Bestinfond (Trades, Portfolio) sold out in the first quarter of 2015.
Viscofan
In Viscofan, the fund purchased 33,609 shares for an average price of 49.57 euros per share. The transaction had an impact of 3.1% on the portfolio.
Viscofan is a Spanish company that manufactures casings and equipment for the meat production industry. It has a market cap of 2.3 billion euros with an enterprise value of 2.3 billion euros. It has a P/E of 18.6 with a forward P/E of 17.01. It has a P/B of 3.4 and a P/S of 3.05.
GuruFocus ranked the company’s financial strength 8 of 10. Its Piotroski F-Score is 5, indicating a stable financial condition. Its Altman Z-Score is 8.5, placing it in the safe zone. Viscofan’s cash to debt ratio is 0.8, above the industry median of 0.64.
GuruFocus ranked Viscofan’s profitability and growth 7 of 10. Its operating margin is 21.4%, and its net margin is 16.4%. It has a ROE of 18.8% and a ROA of 14.1%, ranking above 81% and 90% of other companies in the industry.
The DCF Calculator gives the stock a fair value of 64.1 euros; it was trading at 47.64 euros on Monday.
The fund is the only shareholder among the gurus.
Hispania Activos Inmobiliarios
In Activos Inmobiliarios, the fund purchased 136,286 shares for an average price of 11.62 euros per share. The transaction had an impact of 2.7% on the portfolio.
The company is a Spanish company that invests in real estate properties. It has a market cap of 1.3 billion euros with an enterprise value of 1.5 billion euros. It has a P/E of 5.9, a P/B of 1.03 and a P/S of 13.7.
GuruFocus ranked the company’s financial strength 6 of 10. Its Piotroski F-Score is 4, indicating a stable financial condition. Its Altman Z-Score is 1.5, placing it in the distress zone, which implies the possibility of bankruptcy in the near future. The company’s cash to debt ratio is 0.7,above the industry median of 0.35.
GuruFocus ranked their profitability and growth 7 of 10. It has an operating margin of 284.13% and a net margin of 231.9%. Its ROE is 17.9% and its ROA is 11.03%, ranking above 83% and 92% of other companies in the industry.
The DCF Calculator gives the stock a fair value of 21.5 euros; it was trading at 11.93 euros on Monday.
AzValor is the sole investor among the gurus.
The remaining new holdings for the fund are Altri SGPS SA (XLIS:ALTR, Financial) and Deoleo SA (XMCE:OLE, Financial).
Disclosure: I do not own stock in any companies mentioned in the article.
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