Originally Posted by
Beagle
I have freshly polished up my crystal ball and here's how I foresee it.
FY21 Profit well north of $35m as stated by the company, I have assumed $39m before tax which gives $28m after tax (at full company tax rate of 28%) on 85.5m shares = eps of 32.7 cps (approx. 20 cps in fully imputed dividends) I note the company had this to say about FY22 "
FY22 - Full year's impact of tailwinds and momentum in the economy / sector / exchange rates / premium margins + $4m per annum in fixed cost savings = approx. $45m before tax = $32.4m after tax = eps of 38 cps.
I think a fair PE for FY22 is 13 so that suggests a target price one year hence of 13 x 38 = $4.94
At the mid point of their 60-70% dividend payout ratio fully imputed dividends could be as high as 65% x 38 cps = 24.7 cps next year which is 24.7 / 0.72 = 34.3 cps gross. That's just on a forecast FY22 gross yield of 10% on today's closing price of $3.46