EVO - Evolve Education

[bung5]

oops sorry you are right I miscalculated that . Should be 10.5 PE ratio with the assumption of 18mil fy npat

[tim23]

I'm not seeing where the growth is in this stock?

Acquisition of more centres looks like growth to me?

[trader_jackson]

Acquisition of more centres looks like growth to me?

... Not if it doesn't increase EPS

Although I do like EVO's growth + dividend approach (if acquisitions can increase EPS)

[percy]

Yes I recently added EVO to both my wife's, and my own portfolio.
Paid 95cents ps.
Thought the agm speeches were very positive.
I am expecting eps growth to be between 11% and 13% which is slightly higher than their current PE of 10.87.The yield is also a satisfactory 5%.

Above posted on 23-09-2016
I am therefore looking forward to their result,to see what their eps growth turns out to be.

[James108]

... Not if it doesn't increase EPS

Although I do like EVO's growth + dividend approach (if acquisitions can increase EPS)

From memory centre acquisitions provide around 10% RoC (which is pretty low). But they are now funded by debt at 4-5% so they will be earnings accretive.

The real question is do they increase the valuation of the business? Imo no, not from the get go anyway. My discount rate is 10-11%

[BlackPeter]

I'm not seeing where the growth is in this stock?

Acquisition of smaller players. Sure, that alone will not significantly increase earnings, but economy of scale might. A larger base of preschools will (if used wisely) allow for improved quality as well as reduced costs (higher purchasing power and less admin costs) per centre.

Discl: hold a small parcel.

[sb9]

2	8	11:56:36 am	106	225,000	$238,500	Off Market
3	7	11:56:29 am	106	725,000	$768,500	Off Market

[Beagle]

Me too.!!!!!!!!!!!!!!!.Plus they are in a growth sector.
With Norah Barlow busy as CEO of EHE in Australia, I am pleased that Alistar Ryan will take over as Chairman on 1st June.
The appointment of Ms Grainne Troute, who is already on the boards of SUM and THL, is also positive.

Good moves but you left out the important detail that Norah is still staying on the board. Also I note recently that Milford posted a substantial shareholder notice reducing their stake from ~ 9% to ~8%. As we have seen with their reduction in THL holding, the SP has stagnated while they're selling out. I think the SP performance since inception in Dec 2014 has been most underwhelming relative to the NZX and with Milford obviously disappointed with results to date (as well as other institutional holders I am sure), they really are going to have to start delivering some genuine highly credible EPS growth for this to break out of what has ostensibly been a long flat trading range since listing. This is one for very patient investors, you'll be okay Percy, you're very good at being patient.

[percy]

Last year EVO result was announced on 22nd of May.
Not long to wait.Also waiting for AWF and TNR results.
Am expecting all three to be on track.
I purchased our EVO on and around 9th September last year, at 95 cents per share.
Since then we have received a 2.5 cent divie paid in December.
So on rough figures we are up 14% in 8 months .Very happy with them so far.

[winner69]

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

But no doubt some happy buyers