I have to disagree. They've stated that acquisition and expansion is firmly on their minds (as stated in the quarterly report they continue to acquire centers ) and even with these acquisitions they'll only occupy approx. 5% of the total eec's in NZ. I thought they were reasonable with their IPO price and have them 10-15% underpriced. It'll be interesting to see how it all goes but I do like the prospects.
The average broker target is $1.28 (or 24% underpriced)
We can't use FY15 earnings (giving pe=23) as a indicator of value. This is because they are trading for only 3 months for FY15. FY16 is a far better measure. This would give you a pe=10. I would argue that EVO is one of the few bargains left on the NZX.
Their main risk is their short trading history and ability for management to execute without a track record. To date, they have exceeded all their PFI metrics.
I own EVO.
Thank you for the welcome and correcting my PE based assumption. Another aspect that concerns me is the level of intangible assets, most of which I assume is goodwill from their acquisition frenzy? What times EBIT were those purchases made at?
Thank you for the welcome and correcting my PE based assumption. Another aspect that concerns me is the level of intangible assets, most of which I assume is goodwill from their acquisition frenzy? What times EBIT were those purchases made at?
Centres are being bought on 4.9 times EBITDA and are eps accretive
And noodles being a shareholder ....don't know if that a good sign or not (couldn't resist that)
lol. It is a fair call. I get about 50% of my picks wrong. But I quickly work out that I'm wrong and sell. I add to my winners and let them run. For me, I need become a shareholder for a while to really understand the business. What I'm trying to say is that once you have skin in the game, you become a lot more focused.
I also take a lot of comfort from Paradice joining the register.
One thing I have learnt over the years is that you need to follow the charts with these sort of outfits that growing by acquisition and consolidating a fragmented market.
Sentiment rules. Fundamentals/broker targets and whether acquisitions are eps accretive generally mean squat all. At times they will appear undervalued and at times appear to get more and more outrageously overvalued. Just follow the squiggly line and ride any wave up but when punters turn against the company so does the share price.
One other observation ....at some point in time there always appears to be a point where further acquisitions (counter intuitively) Dont seem to add any more value.
So watching that squiggly line I am .....not that bright at the moment but maybe early days ....or is Norah a drag on the share price.
”When investors are euphoric, they are incapable of recognising euphoria itself “
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