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

[winner69]

Let's move on and all agree to disagree

All sorted now ....I think we have agreed to agree that there was no or minimal increase in H1 EPS v last year

[trader_jackson]

All sorted now ....I think we have agreed to agree that there was no or minimal increase in H1 EPS v last year

So TRA EPS this half year was 13.4c, their EPS growth from last year was 0 (so it seems)
Ok so full year estimated PE for turners, using $30m as NPAT, is 8.8 (NZX website says 12.4 currently)
They have reaffirmed guidance for 18% to 26% increase on FY17 (including turners acquisitions)
I know a company that rhymes with Prilogy that also reported their results today, their EPS growth from last year was also 0, nill, nothing...
Oh and apparently that company that rhymes with Prilogy is expecting "+10% revenue and EBITDA" including their acquisitions (I would assume)
The interesting thing is that company that rhymes with Prilogy is trading on a PE of 14.190, according to the NZX, and that was after a near 9% fall today.

So we have turners, who are growing between 18 and 26% (yes, including acquisitions) trading at a lower price to earnings ratio than a company, who has also made acquisitions and had 0 growth in EPS for the half year, despite also expecting to growth at possibly less than half the rate turners is expecting to.

Well I suppose either turners is cheap (or at least fairly valued), or that company that rhymes with Prilogy is expensive (or really expensive).

No wonder percy likes TRA, the last line in their announcement was Turners is well positioned to keep delivering profit growth for shareholders into the future.

[McGinty]

So TRA EPS this half year was 13.4c, their EPS growth from last year was 0 (so it seems)
Ok so full year estimated PE for turners, using $30m as NPAT, is 8.8 (NZX website says 12.4 currently)

You might want to have another go at this TJ, TRA use NPBT for their forecasts.

[sb9]

Good robust discussion y'day on the forum both for and against.

Being a holder I'm probably be biased in favour of the points raised. Overall the result from TRA wasn't that bad, having said that they're not growing explosively as evidenced in the numbers nor they're declining rapidly. Seem to be holding their ground in a reasonably fragmented and competitive market. And more importantly gearing up for further growth by making all the right moves like vertical integration, new sites, better product (collaborative) offerings etc.

Have listened to the conf call hosted by CEO and CFO. Can honestly say that they sounded very genuine and didn't ramp up the figures than what they were. They acknowledged the fact the sales were softer and also sounded cautiously optimistic about the future prospects.

At the very outset, CEO acknowledged retail shareholders disappointment re the recent SPP and they would keep that mind more in favour of a rights offer in future, very humble to admit that on their part.

Questions from Analysts present were probing and management did answer them in depth without beating around the bush.

In summary, I would rate the result to be on par and re their future prospects very promising. Only time well, will continue hold for now.

[trader_jackson]

You might want to have another go at this TJ, TRA use NPBT for their forecasts.

Apologies, so TRA makes $22m ish profit after tax, PE is about 12 - that company that rhymes with Prilogy and is growing half as fast (or less) is trading on a PE of 14 - a premium of 17% to TRA yet seemingly in a worse, maybe even much much worse, position?... interesting thought really.

[Beagle]

Appreciate your thoughts sb9.

Best comparative company in my opinion is Colonial Motors CMO, currently trading on a historical PE of 11.0.
Can't be bothered re-litigating the various differences between the two companies as Percy and I have debated that at great length already.

[percy]

From my Craigs broker.
"We maintain our buy recommendation [TP $3.75] with TRA offering a solid GARP opportunity and from a stronger capital base."
I note they don't bother covering CMO....lol.

[sb9]

From my Craigs broker.
"We maintain our buy recommendation [TP $3.75] with TRA offering a solid GARP opportunity and from a stronger capital base."
I note they don't bother covering CMO....lol.

Thanks for that percy, can't remember the name but there was one Analyst from Craigs y'day in the conf call.

[percy]

Thanks for that percy, can't remember the name but there was one Analyst from Craigs y'day in the conf call.

I was on the road yesterday,so missed the conf call.
Don't remember the Craig's analysts' name.
At this stage only Craigs and FNZC cover TRA.

[RTM]

From my Craigs broker.
"We maintain our buy recommendation [TP $3.75] with TRA offering a solid GARP opportunity and from a stronger capital base."
I note they don't bother covering CMO....lol.

Percy....stop poking that dog with a stick !