Quality European shares that will make value investors look twice

Tuesday, Nov 26 2013 by
1
Quality European shares that will make value investors look twice

Investors looking for great quality companies with eye catching valuations have seen the pool of opportunities drastically diminish in the UK this year. With equity prices leaping ahead, particularly among small and mid cap stocks, buyers have been left scrabbling around for brief and infrequent price dips and the sometimes unpalatable option of loosening their investment rules. But it doesn’t have to be this way. Across Europe, markets have also risen this year but there still appears to be value and quality in abundance.

While drawing conclusions from index comparisons is perilous, the FTSE 350 has risen by around 14.8% this year (the FTSE 250 on its own is up by 23.5%) while the index of Europe’s largest listed companies, the FTSE Eurofirst 300 Ex-UK, has risen by 17.5%. News that European stocks have been stretching their legs in 2013 won’t come as a surprise to anyone watching Stockopedia’s Screen of Screens investing strategy. It works by tracking companies that have been qualifying for the highest number of our other GuruModel investment screens and has produced an index-busting 23.9% return over the past six months.

By its nature, the European SoS hunts down shares that have comparatively wide appeal across various investment disciplines like value, growth, quality and momentum. But with a small tweak it’s possible to focus on which of them specifically offer potentially appealing value and quality characteristics - and there is no shortage. By ‘forking’ the screen and introducing a Crossover Quality+Value (QV) Rank, it’s clear that the current crop of SoS stocks boast some of the highest QV ranks in Europe - just take a look at the screen. As always, it’s essential to follow up this sort of screening with your own research.

Top ranking stocks

Topping that list on a Quality and Value basis is Romanian oil and gas giant OMV Petrom (SNP), a £4.9bn group involved in everything from upstream exploration and production to downstream refining and marketing. Its combined QV ranking - which integrates a range of metrics into a single composite ranking score - put it in the top 1% of the market. It already qualifies for seven long-only investing strategies including a handful of dividend screens that give a nod to its impressive forward yield of 6.6%. Many oil and gas companies have seemingly been…

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Disclaimer:  

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested. ?>


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OMV AG (OMV) is an Austria-based integrated oil and gas company. It operates through two segments: Upstream and Downstream. The Upstream segment focuses on the exploration, development and production of oil and gas in three core regions: Central and Eastern Europe (CEE), the North Sea, as well as the Middle East and Africa. The Company owns proven reserves of approximately 1.03 billion barrel of oil equivalent (boe) and has a production capacity of over 300 thousand barrel of oil equivalent per day (kboe/d). The Downstream segment comprises two business units: Downstream Oil, that operates around 3,800 filling stations in approximately 10 countries, refineries in Austria and Germany, both of which feature integrated petrochemical production, as well as the Petrobrazi refinery in Romania, which processes predominantly Romanian crude oil, and Downstream Gas, that focuses on gas trade and sales, as well as owns a pipeline network and gas storage facilities in Austria. more »

VIE Price
€46.09
Change
-0.9%
Mkt Cap (£m)
13,583
P/E (fwd)
8.8
Yield (fwd)
3.7

Kardex AG is a Switzerland-based holding company engaged in the provision of static and automated storage solutions and materials handling systems. The Company operates two corporate divisions: Kardex Remstar and Kardex Mlog. The Kardex Remstar division is active in the development, production and maintenance of dynamic storage and retrieval systems. The Kardex Mlog division develops and manufactures integrated materials handling systems and automated high-bay warehouses. The Company provides support to its customers over the entire lifecycle of a product or solution, including an assessment of customer requirements; planning, realization and implementation of customer-specific systems, and ensuring a high level of availability and low lifecycle costs by means of customer-oriented lifecycle management. In July 2013, it divested its Kardex Stow Division, which provided static storage systems, shuttles and automated mobile shelving systems. more »

SWX Price
CHF149.8
Change
1.6%
Mkt Cap (£m)
876.5
P/E (fwd)
26.1
Yield (fwd)
2.7

Ege Seramik Sanayi ve Ticaret AS (Ege Seramik) is a Turkey-based company engaged in the production, sale and distribution of ceramic and porcelain floor and wall tiles for indoors and outdoors. Its offering comprises such product lines, as Alabastrino, Altavilla, Black and white, Carrara, Diamond, Diva, Elegant and Energy, among others. The Company's production facilities are located in Izmir Kemalpasa Organized Industrial Zone, and comprise an area of 500,000 square meters. As of December 31, 2011, the Company’s largest shareholder was Ibrahim Polat Holding AS, which held 60.92% of its shares. more »

IST Price
TRY3.13
Change
1.6%
Mkt Cap (£m)
37.0
P/E (fwd)
n/a
Yield (fwd)
n/a



  Is WBAG:OMV fundamentally strong or weak? Find out More »


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About Ben Hobson

Ben Hobson

Strategies Editor at Stockopedia. My goal is to help private investors learn and invest with confidence through the articles, ebooks and other resources we publish on site. I also occasionally bunk off to interview famous investors at expensive restaurants. I studied History at Aberystwyth University, trained as a journalist and covered business news and corporate finance before settling in as one of the first staff members at Stockopedia.  Away from Stockopedia I'm a mountain bike junkie. more »

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