Briscoes have done an outstanding job of improving their business the last few years - regardless of the boom in retail spend. They got KPMG on board years ago to undertake a massive piece of work on their procurement strategy that is showing its value with impressive improvements in gross profit margins. Lots of good work refining their promotional activity, improving stock sourcing, growing margins, refitting the existing store network and steady growth in expanding the footprint. Came at the right time with the boom in retail sales. Gotta love the 100% fully imputed dividends.
I'm an admirer of HLG but as am overweight in briscoes never invested. A comment on the former thread got me thinking what my performance might have been had I split positions or invested into HLG instead. The answer was a laydown for briscoes - my return would have been half of what I have gotten in briscoes. Of course it depends on when you invested, but for the vast majority of investors at varying investment timeframes, briscoes has been a superior investment than HLG. I used sharesight to calculate the returns (including net cash dividends), and wasn't selective in choosing the dates, I ran the test for each date available in Sharesights share checker drop down menu. Haven't bothered to add MHJ (as we know it would be tops for the last year or so but pretty bad all other periods) or WHS (similar if less pronounced to MHJ).
Attachment 13389
Beagle thinks BGR is more expensive than HLG, which I don't agree with. Assuming last fridays close price (as did this over the weekend), using briscoes 85m for NPAT and adjusting for its $72m stake in KMD gets you to a PE of about 16.77x. Not cheap. Its a bit harder to calculate HLG as they don't provide any guidance (just up or down), we know their current FY22 year will be down. As a proxy I assume 20% down YOY - could be a lot more, or a little less. It gets you to the same answer.
note the spreadsheet snapshot a little messy - i was intending to do EV/EBITDA and EV/EBIT multiples but couldn't be bothered so just focused on good ol PE. For briscoes I looked at it net of its KMD stake which - IE briscoes marketcap less the spot price value of its KMD stake. Briscoes will likely have rec'd ~$2m in dividends from KMD so that should be adjusted out of Briscoes npat if you are trying to find a true PE ex KMD (too lazy to fix it up) - let's just say I assume briscoes will do $87m npat, less the 2m, so 85 :)