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

[BlackPeter]

TRA looks oversold trading 8.5 p/e and 8.9% div yield. Doesn’t add up for a company with a clear plan for growth throughout NZ. The model is proven and management have actually provided forecasts of increasing earnings even in these uncertain times.

Looks like the 50 ema is about to pass through the 100 ema. That’s a good sign. Would love if someone with actual TA skills would comment further

Oh dear ... while I don't wont to comment on TRA's fundamentals and the market in general ... there is nothing positive to take out of this chart:

SP below all relevant MA's (no matter what these MA's doing) is ALWAYS a bad indicator.

TRA chart.JPG

I guess what one potentially could hope for is a double bottom around $3.50 (which would be bullish if confirmed) ... but ways too early to bank this - at this stage its all in the noise ... ;

[Rawz]

Thanks BP.

Looking more at the fundamentals:

Currently trading 1.23x NTA at 31 march.
ROE= 12.4%

It compelling no?

[percy]

Thanks BP.

Looking more at the fundamentals:

Currently trading 1.23x NTA at 31 march.
ROE= 12.4%

It compelling no?

“When the going gets tough, the tough get going.”
Perhaps when times get tougher, we will see the number of used car dealers closing shop increase.
This will give Turners further opportunities to expand their market share .

[RTM]

Thanks BP.

Looking more at the fundamentals:

Currently trading 1.23x NTA at 31 march.
ROE= 12.4%

It compelling no?

This might help Turners. Certainly not going to encourage people to jump out of their cars !
And a few might get back into them.

https://www.newstalkzb.co.nz/news/na...es-are-closed/

[winner69]

“When the going gets tough, the tough get going.”
Perhaps when times get tougher, we will see the number of used car dealers closing shop increase.
This will give Turners further opportunities to expand their market share .

Didn't Tina say '.... simply the best / Better than all the rest /Better than anyone'

[BlackPeter]

Thanks BP.

Looking more at the fundamentals:

Currently trading 1.23x NTA at 31 march.
ROE= 12.4%

It compelling no?

Are you sure about the NTA ratio? My spreadsheet disagrees. However ... there has been a lot discussion on other threads about NTA ... so I leave it in times of dropping real estate values and dropping used car prices to anybody's imagination, whether 1.23 NTA (if true) is a good or bad number for TRA.

ROE of 12.4 is not outstanding, but solid (and consistent with my data). However - one stand alone data point doesn't make a trend ... but yes, if you assume that this numbers will nicely fit into a long and upwards trending future chart, than that's not too bad. If it is however achieved at a cyclical maximum, then better don't ask how it might look next year.

Now - I think it is fair to assume that next FY will not look that flash (given that all reserve banks are currently doing their best to curb consumer spending, and given that everybody who wanted to buy this big new gas guzzling SUV did that already before April 2022 when the governments penalties kicked in). The big question is - are we looking now at a minor dip in a long successful uptrend ... or is this a cyclical which first needs to get properly down before it gets back up again?

Buying cyclicals on the way down is typically not a good strategy to increase shareholder value.

Hard to say how things will turn out (that's the thing with the future). I guess based on the current P/E (9.6 3-yrs forward) and dividend yield (6.5%) TRA looks cheap - IF things don't turn South. However - based on hard experience - I have not yet seen too many companies which looked based on fundamentals cheap and outperformed after that for a long time.

It certainly looks like the market assumes earnings to drop a bit before they might get up again (otherwise the SP would not be that low). If things keep growing - you win, if things start to stutter, the market was right. Joys of investment .

[Sideshow Bob]

https://www.nzx.com/announcements/399917

Turners Automotive Group (NZX/ASX: TRA) are pleased to announce that directors have declared a Q1 FY23 dividend of 5 cents per share (fully imputed) to be paid on 27 October 2022. The record date is 12 October 2022.

[Rawz]

Are you sure about the NTA ratio? My spreadsheet disagrees. However ... there has been a lot discussion on other threads about NTA ... so I leave it in times of dropping real estate values and dropping used car prices to anybody's imagination, whether 1.23 NTA (if true) is a good or bad number for TRA.

.... .

I pulled it from ASB. Maybe they are wrong. It has Book value per share of 2.93 at 03/22.
So SP today $3.60 / 2.93= 1.23x multiple

I think its probably a fair multiple.

I once bought some at $3.50- near the top, whoops.

Ive learnt a lot in 2022. Winners signature definitely applies to me lol.

[Rawz]

https://www.nzx.com/announcements/399917

Turners Automotive Group (NZX/ASX: TRA) are pleased to announce that directors have declared a Q1 FY23 dividend of 5 cents per share (fully imputed) to be paid on 27 October 2022. The record date is 12 October 2022.

same as last year. gross 6.944c per share

[ronaldson]

TRA are conservative with their approach to dividends in the quarter/half year periods. Last FY dividends were 5c,5c,6c, and 7c for a total of 23c. So the first quarter current year announcement of 5cps is consistent but leaves holders exposed to a potential reduction in subsequent quarters, although TRA have a good track record of rewarding holders.