Net Profit after tax
2013 $19.0m
2014 $22.3m
2015 $21.9m
2016 $20.5m
2017 $22.1m
2017 EPS 11.46 cps. Chose whatever PE you think is appropriate for their track record and outlook.
Disc: Don't hold.
Printable View
Net Profit after tax
2013 $19.0m
2014 $22.3m
2015 $21.9m
2016 $20.5m
2017 $22.1m
2017 EPS 11.46 cps. Chose whatever PE you think is appropriate for their track record and outlook.
Disc: Don't hold.
To me these results are just average at best, only positive is that they slightly bet their guidance.
Here's what I see:
- A company with no growth and selling at a current P/E of 14.5 (after today's result)
- The major thing the caused them to beat last years results was the currency gain (note 4), otherwise the result would have matched last year.
- Revenue was down
- Gross profit down
- Operating Cash Flows was down
- Trade Receivable and Inventories up
- Improvement in Admin and Distribution Expenses
I follow the company as I use to hold in 2015, but sold once it was clear they were going miss guidance. Not holding now
Consistent performance with relatively strong cash flows (more consistent than likes of HLG) to support a pretty good dividend
Some hate to take he view of pricing equities like bonds but SKL is one that sort of merits that approach
Say F18 divie 10 cents - what sort of yield?
Maybe 6% to 7% tax paid is pretty good (risk adjusted) - so $1.60 odd for that return pretty good for those punters
And if F18 is the gunna to be great year big capital gains as a bonus.
Plenty of buyers and hardly any sellers.
Total shareholder return over the past 12 months of 30.36%, according to Sharesight, is not to be sneezed at. Shows the value of continuing to assess companies even after they have stumbled.
Personally I can never accept that approach. If I'm taking an equity risk I expect an equity return, for example with HLG at least you get a 13.5% gross yield incl of imputation credits. At a loose level I guess some sort of analogy can be made with MPG which is trading at a similar PE level but in that case at least it has a long track record of growing the top line, something I am hoping will eventually flow through to the bottom line.
Today's SP reaction...go figure ?
You're a tough bunch.
They have commissioned new factory with minimal disruption. Have weathered a major downturn in Dairy and other commodity prices,
Divi is a bit higher. Outlook allegedly good. Directors from memory hold a few shares, have not checked recently.
My buy price $1.25.
May not satisfy all but happy to have and hold as part of my diversified portfolio.
Absolutely agree - they have been (given the right timing) a quite good investment ... and looking into the future they are likely to keep delivering a reasonable revenue stream. As well - board is heavily invested (which is normally a good sign).
I guess what some people are saying is that they are not really a growth company (a 8yr CAGR of 1.7% is actually (considering inflation) negative growth) ... and while they seem to be able to earn as well some money when their major markets are not looking that flash ... it is not quite clear where the next up bump is supposed to come from.
However - steady as she goes ... and I am sure people could do worse than investing in SKL.
Discl: don't hold at current ...
The NZ Dollar is at comparatively high levels. I am not expecting a drop at this stage but any drop in the dollar may boost earnings in NZD terms? It has been an average performer (although quite volatile price wise) the few years I have had a holding. The results were slightly better than I had expected. I am continuing to hold.
True ... a falling NZD would help. However - the experts on currencies are somewhat in disagreement. A German banker recently recommended I should invest (I am looking after my parents investments) some of them in NZD because their analysts think the Euro will tank compared to the NZD.
So yes, the NZD is in historic terms rather dear compared to other currencies, but so is the Swiss Franc :p
RTM - Agreed. On top of which 77% of revenue is from overseas sales so currency exchange rates have not done them any favours gaining new business. The debt to equity of 23% is reassuring too. No reason why patient investors should not continue to benefit in my view.
I also agree with RTM. SKL's probably not going to turn into a top growth stock but it's done well to weather the downturn affecting it's two business sectors, dairy and mining, and has come out a stronger, better performing company. Pays a good dividend, making it a steady income stock in my portfolio. Market seems to agree - shareprice up 4% today!