Annual Report FY2014 notes
Quote:
Originally Posted by
fish
17% increase in profits this year and increased dividend-with full imputation credits
Underlying profit of $227m equates to an eps of 30.9c.
Dividends paid out over the period FY2014 amounted to 25c.
At a share price of $6 this is a net dividend yield of 0.25/6= 4.2%, equivalent to a gross yield of 6%. I think $6 for CEN is looking like fair value.
What I found interesting was the margin (net profit/turnover) though:
$227m / $2,446m = 9.3%
This is the highest margin achieved in the last seven years (up from 8.1% last year and 6.6% the year before that). That is pretty impressive.
FY2015 will see a full year of the benefit from the new geothermal Te Mihi power station. I think Contact are in a good space.
SNOOPY
discl: hold CEN