Pharmaceutical companies in middle & eastern Europe

Fundamental analyse of hungarian Egis and Gedeon Richter, slovene Krka and czech Zentiva.

(more details at: www.stockweb.blogspot.com)

The highest debt we can see in Zentiva and Krka. In Zentiva case we can expect even higher in future as acquisition of turkish company Eczacibasi was covered by loan 460 million EUR. On the other side With ROA the leader is Zentiva, ROE is in favour of Krka.

Comparing by P/E ratio:
Egis - 10 (2006), 16 (2007e), 14 (2008f)
Gedeon Richter - 13 (2006), 22 (2007e), 16 (2008f)
Krka - 28 (2006), 23 (2007e), 20 (2008f)
Zentiva - 24 (2006), 23 (2007e), 17 (2008f)

Comparing PBV:
Egis - 1,66 (2006), 1,55 (2007e), 1,41 (2008f)
Gedeon Richter - 2,42 (2006), 2,23 (2007e), 2,00 (2008f)
Krka - 5,75 (2006), 4,69 (2007e), 3,95 (2008f)
Zentiva - 4,48 (2006), 3,72 (2007e), 3,09 (2008f)

Hungarian companies are expected with higher PE due to the negative impact of government economic reforms. Low P/BV for hungarians is because of current worse environment for pharmaceutical business in Hungary after reforms.Dividend yield is for all around 1% only Egis has just 0.5%.
Me personally I prefer Zentiva rather than Krka. Discount price for hungarians can be also attracting.