A Fundamental Analysis of the Food Industry Sector Listed on the Bucharest Stock Exchange

Abstract

This study analyzes six important food industry firms listed on the Bucharest Stock Exchange: Albalact S.A., (symbol ALBZ), Boromir Prod S.A. Buzau (symbol SPCU), Nutrientul S.A. Palota (symbol NUTP), Prolacom S.A. Botosani (symbol PRCO), Perla Covasnei S.A. (symbol PELA) and ZAREA S.A. (symbol ZARE). The aim is to identify which is the best to invest in. We follow the instruments provided by the fundamental analysis: Return on Assets, Return on Equity, Debt to Assets, Dept to Equity, Sales per Share, Current Liquidity. The fundamental analysis presumes that the future prospects of a security are best analyzed through a proper assessment of the intrinsic value of the underlying company. The risk is within us. In the end, the financial risk does not lie in what types of investments we have made, but in what type of investor we are.