Mahle is a public company that has many years of stock exchange, so I remember she has more than 30 years in the stock market, so she has an immense capacity to survive the crises (which in Brazil are very frequent), foreign exchange, politics, Dictatorships, financial, industrial, etc etc etc …
If you have an action that did not give due importance and nowadays consider pacas this action is the Mahle. It is an industrial company, with good results even in crises, even with the fall of the number of automobiles being manufactured and even with the sale of the vehicles plummeting. I thought the company would get much worse with this but that was not the case. Mahlee was able to do well in 2015 but still managed to keep margin and ROE overall, considering the whole scenario. This is a dividend company, it pays almost all of its profit to shareholders and therefore grows little, in the current multiples the annual yield is at 6% which is not bad at all, it is almost equal to saving.
This company I think is doing well in the dividend part of my portfolio, so far it has not given much of a shock in the results, although it has not been an excellence in terms of earnings growth in the last 10 years, since it grew on average 5% pa profits and In a country with high inflation like ours the ideal would be at least to grow equal to inflation, which I think on average would have been about 7-9% pa in the last 10 years, so that is my criticism of the company, it is not And the company’s ROE is around 14% pa almost equal to the ROE of the Direct Treasury and other fixed incomes that we see around. Net debt increased a little from 2014 to 2015 and this is starting to bother from 304 to 327 million and 135 million reais of the cash (used for investments) were consumed.
The total profit was 172 million reais in 2015 against 197 million reais in 2014. As I said considering the situation of the country destroyed by the demon Dilma and the PT was not so bad, remember that many companies and industries closed the doors and not Survived. Sales of new cars have dropped a lot in 2015-2016 and with those high-interest rates then who is crazy about financing the new car and buying zero km? I myself do not have the courage, I am even in my second car and both bought used and I was very happy with my choices, and never intend to buy zero km car, NOR WHEN A DAY IS RICH. One day I will make a post just about buying zero km car.
This is the type of company that will get worse when crisis comes and the industry suffers, and when new cars stop being sold. There are still many cars to sell in Brazil, and if interest rates go down and the economy improves, more will be sold, which makes it harder for Brazil to recover its economy, which never comes. Many car dealerships were closed in Brazil in 2015 and many auto parts stores, GDP fell and the economic scenario did not help. To invest in actions is to be in the flavors of the winds of politics and economy, all influence.
The release is very dry and the board was very sincere saying that 2016 may be even worse than 2015. Very good not to try to fool the investor with false promises or making excuses ragged. At last is a company that suffered LITTLE, in a sector that suffered a lot. And sometimes what matters most to a company is to SURVIVE than to LUCK. I would be happier if she paid all the debt soon enough to distribute dividends, I do not like to receive dividends knowing that the company is indebted, I do not feel comfortable with it, it makes me seem like controllers are more interested in putting money in their own pocket Than to make the company healthier, especially in times of crisis that the debts get very high-interest rates. It’s a good company, but for now, in 2016 I will not buy more.
From the release I highlight: