Quote:
Originally Posted by
Lizard
Sure enough, forecast came out today and is strong (above my expectations). Revenue was on track at +20% on pcp (similar to at HY). However, EBIT comes in at $6m for the year - so at $1.10, it is still on a reasonable EV/EBIT ratio of 5.6, assuming no change in cash/debt position from HY. FY dividend increases by 1cps to 4.0cps, taking total annual div to 7.0cps or 6.4% yield plus franking. NPAT of $4.0m puts it on a PE of 8.2. My target price becomes $1.35 - $1.40 over next 4 months, so still something in it.
Nice work Liz, i have to admit I was dubious as to where its top-line growth was going to come from - but looks like I was wrong with those concerns.
You are in good company with your analysis / targets - see the latest Boat Fund post on FB:
"EPS since 2007 have gone from 1.5c and this year are forecast to come in at almost 12c (up 40% from 2011) with a 7c ff dividend. Revenue is up 20% with ROE of 30% and negligible debt. SNL is probably worth around $1.35, so there's probably a bit more left in this one."