I’m in as well (35% of my portfolio!). Great divvy and a ceo at the helm who is super focused and very confident on delivering for his shareholders. Also nice to see the sell side down to just a few…
I’m in as well (35% of my portfolio!). Great divvy and a ceo at the helm who is super focused and very confident on delivering for his shareholders. Also nice to see the sell side down to just a few…
It is incredible that these shares were a buck each (ish) in the first quarter of 2020 and listed as one of the top yielding stocks then. Could be easily bought too
Share price all time high now (if you ignore the Dorchester days)
New slide coming up 'Pathway to $6 share price' .....the previous slide will be out of date by time next profit announcement
I agree and that's how I see it too. Agree that once we see many years of steady growth then we should also see PE multiple expansion. A management team that are firing on all cylinders, a brand that's building increasing market awareness, a credit application process that after many years of refinement now seems to be working really well and strong and enduring sector tailwinds all add up to a stock that's showing considerable potential for shareholder wealth accretion over the years ahead. I really like that shareholders are being very well rewarded along the way with strong dividends while we enjoy the growth. This is a classic GARP (growth at a reasonable price) stock that really does tick all the boxes !
The one thing I would suggest they consider tweaking is to perhaps change the dividend policy to ~ 80% of earnings and introduce a dividend reinvestment plan. I believe this would enhance the opportunity for shareholders looking for yield while contemporaneously leaving Turners with more cash for expansion.
Nice chart mate, thanks. In my view its probably three. Once you have half a decade of steady profit growth and the clear prospect for more I think its highly likely the market will sit up and take proper notice. We could see it then move up into the 15-18 range with, in my opinion, about the mid point being most likely. That's how I foresee it...but as with anything so far in the future, only time will tell :)
Be good if they surprised the market with $43m this year and a new target of $55m for FY24 and road map to $7 for 2025 wouldn't it...couldn't possibly happen, or could it ? ;)
High payout ratios and PE expansion don't always follow.
Something I've observed over the years but there does seem some rationale as to why it happens.
One reason is that companies with high payout ratios are seen by 'serious' investors as companies whose growth is possibility limited (not reinvesting profits to drive growth) and as such not seen as true growth stocks and desrving of high multiples. As a consequence dividend yield is the driver of share price.
Seems a reasonable way of looking at things. Besides TRA stocks like HGH and HLG seem to be valued this way .... good dividends etc but often seen cheap as on a PE basis.
Been many academic finance papers written over the years on this subject but not always conclusive - market behaviour not always rationale eh. But discussions around P/B Ratios, ROE, PE ratios, PAyout ratios and how they are all interlinked is always quite interesting.
One interesting thing about TRA is that its Book Value has only grown at 6%pa over the last 5 years (to Mar 21) even though NPAT has grown at about 12% pa. See what a high pyout ratio does.
Never mind - they will doing that slide and changing the heading to 'Pathway to $6 share price'