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POLIS Immobilien AG (XTER:PQL) Financial Strength : 0 (As of Jun. 2015)


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What is POLIS Immobilien AG Financial Strength?

POLIS Immobilien AG has the Financial Strength Rank of 0.

Warning Sign:

POLIS Immobilien AG displays poor financial strength. Usually this is caused by too much debt for the company.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

POLIS Immobilien AG's Interest Coverage for the quarter that ended in Jun. 2015 was 5.37. POLIS Immobilien AG's debt to revenue ratio for the quarter that ended in Jun. 2015 was 7.49. As of today, POLIS Immobilien AG's Altman Z-Score is 0.98.


Competitive Comparison of POLIS Immobilien AG's Financial Strength

For the Real Estate Services subindustry, POLIS Immobilien AG's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


POLIS Immobilien AG's Financial Strength Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, POLIS Immobilien AG's Financial Strength distribution charts can be found below:

* The bar in red indicates where POLIS Immobilien AG's Financial Strength falls into.



POLIS Immobilien AG Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

POLIS Immobilien AG's Interest Expense for the months ended in Jun. 2015 was €-1.24 Mil. Its Operating Income for the months ended in Jun. 2015 was €6.64 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2015 was €142.16 Mil.

POLIS Immobilien AG's Interest Coverage for the quarter that ended in Jun. 2015 is

Interest Coverage=-1*Operating Income (Q: Jun. 2015 )/Interest Expense (Q: Jun. 2015 )
=-1*6.643/-1.238
=5.37

The higher the ratio, the stronger the company's financial strength is.

Warning Sign:

Ben Graham prefers companies interest coverage is at least 5. POLIS Immobilien AG interest coverage is 4.03, which is low.

2. Debt to revenue ratio. The lower, the better.

POLIS Immobilien AG's Debt to Revenue Ratio for the quarter that ended in Jun. 2015 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2015 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(1.775 + 142.157) / 19.212
=7.49

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

POLIS Immobilien AG has a Z-score of 0.98, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 0.98 is in distress zone. This implies bankrupcy possibility in the next two years.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.


POLIS Immobilien AG  (XTER:PQL) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

POLIS Immobilien AG has the Financial Strength Rank of 0.


POLIS Immobilien AG Financial Strength Related Terms

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POLIS Immobilien AG (XTER:PQL) Business Description

Traded in Other Exchanges
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Address
POLIS Immobilien AG was founded in Berlin in 1998. It is a real estate company that buys, refurbishes and manages office properties throughout Germany for its own portfolio. Principal business processes of POLIS involve letting office, retail and residential properties, buying and selling properties, and investing in order to increase the value of its real estate holdings. It also provides asset management services for third parties.

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