Morningstar think EBOS going OK
http://www.sharechat.co.nz/article/a...house-dealhtml
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Morningstar think EBOS going OK
http://www.sharechat.co.nz/article/a...house-dealhtml
I think a lot of institutions and funds will be rebalancing their portfolios with a bigger holding in EBO before the end of the month.
i focus on the growth being maintained and the efforts the company is putting into achieving that.
Growth is not always consistent with Ebos , they seem to have a year or two of merely average growth, and then another spurt.
Attachment 9787Attachment 9786
Updated the old chart showing Ebos EPS and shareprice over the years
Gives you a good idea where the share price is heading over the next year or so
Its quite interesting looking at the opposite end of things, instead of on Ebos's end, the company that lost the contract was Sigma Healthcare, which dropped 40% on the day or about $343 million from their Market Cap. Given it was a smaller company compared to Ebos then I imagine Ebos will get better margins. Sigma Has a EBIT margin of 2% while Ebos has EBIT margin of 3%, so out of the same deal Ebos would earn 50% more for the bottom line. Based on the disclosures by Sigma the impact is about $30 million EBIT, given Ebos's better margins then it would likely be worth $45 million in EBIT , which will give it a 20% boost in EBIT for Ebos starting from next year when the deal starts.
*Key assumption is that EBOS earns similar EBIT out of all products and that the contract terms are similar too.