Steinhoff or Uniper: How much substance is still in these stocks


When evaluating the price-to-sales ratio, shares from Steinhoff (WKN: A14XB9) or Uniper (WKN: UNSE01 ) is almost unbeatable. It’s only a fraction of 1. But that doesn’t give them the ability to buy. Because if you look at the other main figures, things look bleak.

Lenders Uniper and Steinhoff are in the driver’s seat

Uniper narrowly avoids a total loss

From the moment I saw the first details of the Uniper rescue package, it was clear to me that it was here minority shareholders are practically at risk of total loss. A few weeks later, the specter of nationalization gripped the press. The state cannot inject foreign capital indefinitely.

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It will probably secure the majority by converting to equity and buying new shares. of Finland Fortune (NASDAQ: 916660) is playing because it wants to recover its multibillion-dollar loans. The question remains, after all the dilution, what’s in it for the minority shareholders? Instead of the last 4 euros, I would have set my expectations quite low. And in fact, only 1.70 euros are paid per share.

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Steinhoff buys himself more time

Steinhoff, on the other hand, is not threatened with nationalization. But even there, the lenders have a say, so a total loss is possible on the shareholders’ agenda. And in contrast to cheap shareholders and KfW loans to Uniper, Steinhoff still has to pay horrendous interest.

Different investors have a colorful mix of loans with different features and terms. Most of them are non-performing commercial loan specialists who want to get the most out of it. Management still faces the extremely difficult task of finding a solution that everyone can support and that gives Steinhoff some breathing room.

The focus is on extending the term, which allows the remaining assets to be sold at the best price, rather than liquidating them below their value in a short period of time.

As is the substance of Uniper and Steinhoff

Will the federal government do good business again?

Uniper’s balance sheet was already under water at the end of the first half. Another quarter of horror followed. At the end of September, this could be a double-digit billion sum that Uniper is missing. Failure to raise equity leads to bankruptcy. In the end, the debt and equity provided by the federal government will probably amount to about 20 billion euros, if it really reaches 100 percent. Fortune (WKN: 916660) assumed the loans to be serviced by Uniper.

In return, he gets a company with past sales of between 50 and 200 billion euros, depending on the price of gas. 2019 was the best year to date with a profit of 922 million euros.

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Having lost a large part of the Russian business, it will probably be difficult to reach this level in the near future. And before Uniper even thinks about the word dividend, the group will have to endure many years of debt servicing. So at first, it’s hard to imagine how the state could emerge victorious from this deal.

Will Steinhoff still manage to break free?

The extension of the term does not mean that Steinhoff would also receive a more favorable interest rate. In the current environment, it may even be the opposite, with inflation and market risks more likely to push interest rates even higher. The challenge for Steinhoff Holding, which has been lowered, is correspondingly high to get into the black spot on the bottom line.

Or it would be Increasing hidden reserves it is important to cover negative equity. But there are also plenty of headwinds on this front:

Mattress Firm’s planned IPO had to be postponed. There is no good income to be had at this time. Discount chain Pepco Group (WKN: A3CQ3M) is doing well and growing at double digits. But…

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