EVO - Evolve Education

[percy]

Milford sold heaps more last week - cant be meeting their expectations

But no doubt some happy buyers

No doubt..But no new shareholding notices?

[hardt]

I wonder why the market has decided to only allow a PE of 8-11 for Evolve, small cap growth stock and a great yield.

Can anyone shed some light on why this stock is so cheap?

[percy]

I wonder why the market has decided to only allow a PE of 8-11 for Evolve, growth stock and a great yield.

Can anyone shed some light on why this stock is so cheap?

I hope the answers will be forth coming with the result,which is due before the end of the month .
I have been expecting their eps growth rate to be higher than their PE ratio.

[James108]

I wonder why the market has decided to only allow a PE of 8-11 for Evolve, small cap growth stock and a great yield.

Can anyone shed some light on why this stock is so cheap?

IMO because their growth is only at approx their cost of capital. So they aren't really growing. they need to prove they can re invest and earn returns at a rate significantly higher than their cost of capital.

Having said that I still think they are below fair value atm.

[hardt]

I hope the answers will be forth coming with the result,which is due before the end of the month .
I have been expecting their eps growth rate to be higher than their PE ratio.

It is priced for flat growth, dividend yield is looking close to 7% for 2017... I am trying to look for a downside here!

IMO because their growth is only at approx their cost of capital. So they aren't really growing. they need to prove they can re invest and earn returns at a rate significantly higher than their cost of capital.

Having said that I still think they are below fair value atm.

ROCE of 10% not bad, even if they stopped expanding... the distributable cash flow will continue to grow and will come right back to shareholders... again, where is the downside?

Discl not held, possibly soon though.

[winner69]

Even Regal now disclose they've reduced their interest in EVO

[forest]

I wonder why the market has decided to only allow a PE of 8-11 for Evolve, small cap growth stock and a great yield.

Can anyone shed some light on why this stock is so cheap?

Last year I posted a view of an insider in this industry (post 108). Maybe read it and see if you agree.

[Beagle]

I wonder why the market has decided to only allow a PE of 8-11 for Evolve, small cap growth stock and a great yield.

Can anyone shed some light on why this stock is so cheap?

Have a read back on this thread right from the start. All I have to add is that Norah Barlow is staying on the board, another negative at least as far as I am concerned.
I agree with your post #108 Forest.

[hardt]

Have a read back on this thread right from the start. All I have to add is that Norah Barlow is staying on the board, another negative at least as far as I am concerned.
I agree with your post #108 Forest.

I remember thinking at the time of reading that article it sounded like soppy bollocks to me, yes, running a business is difficult, no more difficult than anyone else has it...

" having to balance shareholders, staff and the parents was hard! " - yea no sh!t

Good for the very wealthy Wright family who were not after profits, back in the real world of the free market, there is money to be made in this sector for a long time to come...

Lets look at EVO's current metrics and the likelihood of continued earnings performance, high chance of shareholders being rewarded here.

[Antipodean]

Balancing multiple interests is part of any business. The listed retirement sector does well enough, you could use the same quote and just replace parents of the kids with kids of the parents....