Looking at this one, but do not currently hold
Anyone have thoughts or opinions on:
- Relatively high intangible asset base relative to equity? Based on FY21 half year numbers, NTA ~$64m ($0.74 / share), so fairly large premium
- Recognise that by nature this share is a play at ability of business to turn stock and generate cash
- Fairly high leverage, based on rough EBITDA of $68m for FY21, Debt : EBITDA is ~4.6x
Encouraging given business model that operating cashflow appears strong at ~$0.33 / share, and also comfortably covers dividends.
Significantly lower stock holding at FY21 half year encouraging as would suggest stock is turning quickly, which essentially is the crux of sales side of business.
Provisions revised down at Sept 2020 (6.1% of gross finance receivables) compared to March 2020 (7.0%)
Taking mid-point of revised NBAT guidance ($34m), less circa $9.5m for tax, NPAT $24.5m = 28.5 cps.
60-70% payout of NPBT corresponds with ~$22m (65%) = 25.6 cps dividend potentially (~8% yield)