| Valuation method | Value, € | Upside, % |
|---|---|---|
| Artificial intelligence (AI) | n/a | n/a |
| Intrinsic value (DCF) | n/a | |
| Graham-Dodd Method | n/a | |
| Graham Formula | n/a |
ROY Asset Holding SE (RY8.DE) is a Germany-based investment holding company with diversified operations in ceramic ware and real estate. The company operates through two primary segments: Ceramic Ware and Real Estate. Its Ceramic Ware segment focuses on the development, production, and marketing of ceramic tiles, sanitary ware, and related accessories, serving markets in Europe, Asia, and the United States. The Real Estate segment engages in property development, leasing, and sales, with a portfolio that includes office spaces, single and multi-family houses, and other commercial properties. Formerly known as ROY Ceramics SE, the company rebranded to reflect its broader asset-holding strategy. Headquartered in Hungen, Germany, ROY Asset Holding SE is listed on the Deutsche Börse (XETRA) and operates in the industrials sector, specifically within the construction industry. Despite its diversified approach, the company faces challenges in profitability, as reflected in its recent financial performance.
ROY Asset Holding SE presents a mixed investment profile. The company's diversified operations in ceramic ware and real estate provide some resilience against sector-specific downturns. However, its financials reveal significant challenges, including a net loss of €22.1 million in FY 2020 and negative operating cash flow of €7.6 million. The company's high beta of 1.434 indicates higher volatility compared to the broader market, which may deter risk-averse investors. While its cash position of €4.7 million offers some liquidity, the lack of dividends and ongoing losses suggest limited near-term attractiveness. Investors should closely monitor the company's ability to stabilize its operations and improve profitability before considering a position.
ROY Asset Holding SE operates in two distinct but competitive industries: ceramic ware and real estate. In the ceramic ware segment, the company competes with established players in Europe, Asia, and the U.S., where cost efficiency, design innovation, and distribution networks are critical. Its real estate segment faces competition from local and international property developers, where location, pricing, and leasing terms are key differentiators. The company's competitive advantage lies in its dual-sector exposure, which could provide diversification benefits. However, its financial struggles and negative earnings suggest it lacks the scale or operational efficiency of larger competitors. In ceramic ware, ROY must contend with low-cost producers in Asia, while in real estate, it competes with well-capitalized firms with stronger portfolios. The company's ability to leverage its German base for European market access is a potential strength, but its overall positioning remains weak due to financial instability.