Sold out yesterday and glad to be finally out after being down for several years doubling down when at $1.02 ended up down slightly but as I said glad to be rid of. Good luck to holders.
Printable View
Sold out yesterday and glad to be finally out after being down for several years doubling down when at $1.02 ended up down slightly but as I said glad to be rid of. Good luck to holders.
Amazing result from GXH
http://nzx-prod-s7fsd7f98s.s3-websit...813/371655.pdf
Looks like some were expecting it from the price rise over the last couple of days........
Yes, pretty solid result:
Crunching some numbers:Quote:
• Operating Revenue up 18% to $670.3m
• Operating Profit (EBIT) up 54% to $54.1m1
• Net Profit After Tax Attributable to Shareholders up 47% to $24.6m1
• Pharmacy Operating Revenue up 16% and Operating Profit up $11.7m to $35.9m
• Medical Operating Revenue up 35% and Operating Profit up $6.6m to $16.0m
• Community Health Operating Revenue up 12% and Operating Profit up $1.9m to $5.6m
• $21m Net Cash position – 3.5 cps dividend declared
RoE up to 19.4% (quite good) and liabilities to assets down to a quite manageable 57.4%
long term (10yr) PE is 11.2 and earnings CAGR throughout this 10 year window was 6.7; Pretty flash.
Looks like the "devastating" competition of the discounters is for them not so bad after all. Numbers look healthy, industry clearly has a tailwind. Maybe there are reasons to bother with this company after all?
They even managed to move their NTA into positive territory (well, just .... the purchase of all these brands is still weighing heavily on the books).
the growth area is medical division which they should pour capital into to expand more rapidly.
Love them or hate them you have to admire GXH's financial performance over recent years.
Solid ROE and F22 it was 19.4% but whats impressive is their return on invested capital (ROIC) which includes borrowings of 18.4%
That's way above their cost of capital so Greencross are adding real economic value - excess returns are pretty high
If one assumed a WACC of 10% those the excess return over the cost of capital this year was about $16m
Some finance / investment professionals get an intrinsic value of a company be using MVA = NPV of future EVA (MVA being Market Value Added - difference between Market Cap and Book Value / NPV of future EVA being the present value of future excess returns)
At the moment GXH's MVA is a mere $7m - using a modest growth rate this 'should' be be about $170m which gives an Intrinsic Value of $2.40 a share
Whatever GXH share price 'deserves' to be over $2 but market sentiment towards them is such that this may never happen
Does put them out there to be acquired .... even though they are acquiring quite a few things themselves
Other than paying a bit to much for one round...I am a happyish holder. As long as they keep looking after their basics....they should do OK. The same demographics helping the Retirement companies should also assist GXH.
Will continue to hold provided dividend holds up.
2.4% of NZ / OZ portfolio.