Lots of excitement and bullish talk on this thread. And it appears some respected posters have taken a position. So I thought I might take a closer look. I decided to do some peer comparison on other listed building companies.
My prefer metric for peer comparison is EV/EBIT as it takes into account debt and the ability to pay out cashflows to shareholders.
These figures are based on FY16 consensus broker forecasts.
|
EV |
EBIT |
EV/EBIT |
Yield(net) |
FBU |
6239 |
675 |
9.24 |
5.64 |
STU |
288 |
36.7 |
7.85 |
9.29 |
MGL |
350 |
32.3 |
10.84 |
4.93 |
CAV |
76.8 |
8.7 |
8.83 |
0 |
So nothing to be excited about at the current price level. Perhaps this turnaround will take hold and as Balance suggests FY17 will see further earnings growth.
Best of luck to holders.