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

[Marilyn Munroe]

... but their insurance side of the company will continue to do well and we may see more upside with that side of the company.
l

The Commerce Commission is not happy with the performance of what it calls add on insurance in the motor industry. I would expect them to perform increasing compliance audits and or introduce even more strict consumer protection laws for these products.

https://comcom.govt.nz/__data/assets...ember-2021.pdf

Boop boop de do
Marilyn

[Ricky-bobby]

Hey team, when’s the Div hitting us? Haven’t seen any details come through.

[winner69]

Hey team, when’s the Div hitting us? Haven’t seen any details come through.

another month ---- you'll get it on July 28th

You could have looked here https://www.nzx.com/instruments/TRA/dividends

[winner69]

that CAR Caresales.com taking on the world .... they talk billions

https://www.businessnewsaustralia.co...ebd3bf4ce1f3a6

Different business model but margins / ebitda that Turners would die for

[Joshuatree]

that CAR Caresales.com taking on the world .... they talk billions

https://www.businessnewsaustralia.co...ebd3bf4ce1f3a6

Different business model but margins / ebitda that Turners would die for

"So after paying US$624m for 49% of Trader Interactive (TI) a year ago, CAR is paying US$1.27bn for the remaining 51%"
Quite a premium for control ehh.Watching CAR for any weakness in s/p.Its one of those few premium Aussie stocks that a flight to safety will pushup .

[Jonette]

The annual report just dropped.

Page two has this statement "Looking beyond FY23, we remain very confident about further growth over the medium to longer term and we have updated our three-year rolling target to cross over $50m of profit before tax by FY25."

Taking a look at their NPBT "Underlying NPBT was up 29% to $44.1m" the above forecast looks pessimistic

[Rawz]

TRA trading on a p/e of 8.5 and a net div yield of 6% (paid quarterly) according to ASB.

Solid and clear plan for growth ahead.

Jonette- I agree about the forecast npbt of $50m being conservative. But we are apparently heading into a recession so fair enough being cautious and throwing out a number on the low end of what they hope to achieve

It’s probably more a message to the market… hey everyone, stormy clouds ahead, but no worries for us, we will still grow EPS and DPS

Happy holder

[BlackPeter]

TRA trading on a p/e of 8.5 and a net div yield of 6% (paid quarterly) according to ASB.

Solid and clear plan for growth ahead.

Jonette- I agree about the forecast npbt of $50m being conservative. But we are apparently heading into a recession so fair enough being cautious and throwing out a number on the low end of what they hope to achieve

It’s probably more a message to the market… hey everyone, stormy clouds ahead, but no worries for us, we will still grow EPS and DPS

Happy holder

MBG (Mercedes Benz) is currently trading on an average backward PE of 5.1 and a dividend yield of 7.4%!

Other car manufacturers and dealers look quite similar (well, but Tesla - too much hype).

TRA seems to be pretty dear.

I suppose the market just expects business for car manufactureres and dealer to get a bit rougher in the years to come. Lucky for us (I am holding MBG) - the market is not always right!

[Rawz]

MBG (Mercedes Benz) is currently trading on an average backward PE of 5.1 and a dividend yield of 7.4%!

Other car manufacturers and dealers look quite similar (well, but Tesla - too much hype).

TRA seems to be pretty dear.

I suppose the market just expects business for car manufactureres and dealer to get a bit rougher in the years to come. Lucky for us (I am holding MBG) - the market is not always right!

I have a wee link into the Merc truck game in NZ.. if you want to order a new truck from the factory (because the dealers dont have any stock) the earliest delivery is 2024-2025. COVID totally wrecked the 'just in time' supply chain and its going to take years for things to catch up.

Anyways, TRA probably has been dragged down with the sector (and market as a whole) but they are expanding in NZ with new branches and they have solid supply lines of used cars + great finance/insurance business. TRA cheap but growing eps. MBG cheap but will they grow over next 3 years?? (i dont know the company at all. Its a big business with many moving parts and global.).

[BlackPeter]

I have a wee link into the Merc truck game in NZ.. if you want to order a new truck from the factory (because the dealers dont have any stock) the earliest delivery is 2024-2025. COVID totally wrecked the 'just in time' supply chain and its going to take years for things to catch up.

Anyways, TRA probably has been dragged down with the sector (and market as a whole) but they are expanding in NZ with new branches and they have solid supply lines of used cars + great finance/insurance business. TRA cheap but growing eps. MBG cheap but will they grow over next 3 years?? (i dont know the company at all. Its a big business with many moving parts and global.).

You realize that Daimler Truck is now a different company from MBG?

Anyway - and for what it is worth - analysts expect MBG to keep growing revenue as well as earnings over the coming three years. Just read as well the Volkwagen Q1 (just another boring international car manufacurer and dealer) ... they confirmed their 15% growth expectations for 2022.

Things seem to look good for the industry. Delivered cars are down but margins are really, really healthy. Whether this will be true for a second hand business as well? Time will tell.

Given that TRA is more living from clipping the ticket ... less tickets clipped might be detrimental to its business volumes and it might not be so easy for them to increase the margin (i.e. price per clip). Remember - when new cars get dearer the price for old cars will rise as well, and TRA needs to first buy the old car before it can resell it.