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Sedlmayr Grund und Immobilien KGaA (FRA:SPB) Financial Strength : 3 (As of Sep. 2023)


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What is Sedlmayr Grund und Immobilien KGaA Financial Strength?

Sedlmayr Grund und Immobilien KGaA has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.

Warning Sign:

Sedlmayr Grund und Immobilien KGaA 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.

Sedlmayr Grund und Immobilien KGaA's Interest Coverage for the quarter that ended in Sep. 2023 was 3.44. Sedlmayr Grund und Immobilien KGaA's debt to revenue ratio for the quarter that ended in Sep. 2023 was 5.95. As of today, Sedlmayr Grund und Immobilien KGaA's Altman Z-Score is 1.19.


Competitive Comparison of Sedlmayr Grund und Immobilien KGaA's Financial Strength

For the Real Estate Services subindustry, Sedlmayr Grund und Immobilien KGaA'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.


Sedlmayr Grund und Immobilien KGaA's Financial Strength Distribution in the Real Estate Industry

For the Real Estate industry and Real Estate sector, Sedlmayr Grund und Immobilien KGaA's Financial Strength distribution charts can be found below:

* The bar in red indicates where Sedlmayr Grund und Immobilien KGaA's Financial Strength falls into.



Sedlmayr Grund und Immobilien KGaA 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:

Sedlmayr Grund und Immobilien KGaA's Interest Expense for the months ended in Sep. 2023 was €-9.8 Mil. Its Operating Income for the months ended in Sep. 2023 was €33.7 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Sep. 2023 was €797.5 Mil.

Sedlmayr Grund und Immobilien KGaA's Interest Coverage for the quarter that ended in Sep. 2023 is

Interest Coverage=-1*Operating Income (Q: Sep. 2023 )/Interest Expense (Q: Sep. 2023 )
=-1*33.733/-9.798
=3.44

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

Warning Sign:

Ben Graham prefers companies' interest coverage to be at least 5. Sedlmayr Grund und Immobilien KGaA interest coverage is 3.46, which is low.

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

Sedlmayr Grund und Immobilien KGaA's Debt to Revenue Ratio for the quarter that ended in Sep. 2023 is

Debt to Revenue Ratio=Total Debt (Q: Sep. 2023 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(0 + 797.482) / 133.958
=5.95

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.

Sedlmayr Grund und Immobilien KGaA has a Z-score of 1.19, indicating it is in Distress Zones. This implies bankrupcy possibility in the next two years.

Warning Sign:

Altman Z-score of 1.19 is in distress zone. This implies bankruptcy 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.


Sedlmayr Grund und Immobilien KGaA  (FRA:SPB) 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.

Sedlmayr Grund und Immobilien KGaA has the Financial Strength Rank of 3. It displays poor financial strength and is likely in financial distress. Usually this is caused by too much debt for the company.


Sedlmayr Grund und Immobilien KGaA Financial Strength Related Terms

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Sedlmayr Grund und Immobilien KGaA (FRA:SPB) Business Description

Traded in Other Exchanges
Address
Mars street 46+48, Munich, DEU, 80335
Sedlmayr Grund und Immobilien KGaA operates as a real estate company. It is involved in the management, development, and expansion of its property portfolio which mainly comprises a housing and commercial areas. Its other operations consist of real estate leasing, real estate sales and serviced apartment leasing.