TRA - Turners Automotive Group [previously TNR - Turners Limited]

[RTM]

I think COVID will help them....if one had a choice...from a health perspective...would one prefer to jump on a bus or train...or drives one's own car.
This will affect many of the people that buy cars in Turners range. I think anyway.

[crighton100]

LIve in a retirement village [full of 250 old farts with money to spend on cruises,like us].Now with one lockdown after another,many like us are saying no more cruises,to dangeruous to get onto the petrie dishes].So you cant update your home,because thats the villages,so upgrade your car,plenty in our village have done so [because you know we just dont die so young & have to keep up with the times].Have a great one [can tell you, HAVE PUT QUITE A FEW GRAND INTO TRA,it beats the 1.3% the bank was giving to us.Good luck to you all

[clearasmud]

I agree, they have been a 2020 dividend star. I tripled.
No more cruises ay.
Surely not?

[Baa_Baa]

Whose surprised that there’s been no announcement or advertising about going live with their car subscription service? Or have I missed it?

[Goob]

I really want to invest in Turners. Seems management are very aware of the direction to go in, a classic unloved 'boring' Peter Lynch stock that no one cares about but quietly has strong growth. Great value trading very cheap.

Sorry if this has been talked about before, but I just can't bring myself to buy in. Can anyone explain why they have such high debt? I haven't come across a company so levered - is there a particular reason?

Debt/Equity 150+%. Just paid $12.8m in interest costs on $30.3m in unlevered free cash flow (according to my basic calculations). 30% of FCF going towards debt and 42% of unlevered FCF paying off debt.

Anyone that knows more about turners can explain why this is good amount of debt?

[BlackPeter]

I really want to invest in Turners. Seems management are very aware of the direction to go in, a classic unloved 'boring' Peter Lynch stock that no one cares about but quietly has strong growth. Great value trading very cheap.

Sorry if this has been talked about before, but I just can't bring myself to buy in. Can anyone explain why they have such high debt? I haven't come across a company so levered - is there a particular reason?

Debt/Equity 150+%. Just paid $12.8m in interest costs on $30.3m in unlevered free cash flow (according to my basic calculations). 30% of FCF going towards debt and 42% of unlevered FCF paying off debt.

Anyone that knows more about turners can explain why this is good amount of debt?

Easy. Turners is basically a finance company with a plugged on used car sales business. If you compare them with other finance companies, then you will find out that the liabilities don't look that outrageous.

Obviously - Finance companies do come with particular risks (especially given the current situation of the NZ economy). If the future brings e.g. large unemployment, this would hurt them. Up to you how you rate these risks compared to the potential rewards.

Discl: don't hold.

[Beagle]

Whose surprised that there’s been no announcement or advertising about going live with their car subscription service? Or have I missed it?

I think there's an increasing range of car subscription services out there so as you suggest mate, unless they promote it widely it will be difficult to gain meaningful traction.

[crighton100]

I remember working with Bruce Plested many years ago,then he started Mainfreight & his idea was give staff an incentive & look where they are today [what did he do ,he made all his managers shareholders].Reading the latest result of TRA what is interesting they are are going down the same path.As an oldie I can really relate to that,you can see they pay quarterly high dividends & what gets staff motivated more than knowing if they perform well they are going to get nice bonuses in the way of dividends every 3 months.I think this company will do quite well [hope you got onto my other tips MET & PPH earlier this year,at least doubled your money].Be lucky

[sb9]

Another week to go to get hold of divvy before it goes XD next Fri...

[sb9]

Last day for yield chasers to get in to avail upcoming divvy..