SUM - Summerset Group

[winner69]

Higher PE would be for overall NPAT (incl. fair valuation gains on investment property) whilst the lower one would be for underlying profit. Have a look on the results presentation from todays announcement on slide 23 for the calculation of underlying profit.

Other way around for the PEs fox

NPAT higher (lower PE) than underlying earnings (higher PE)

[voltage]

Other way around for the PEs fox

NPAT higher (lower PE) than underlying earnings (higher PE)

thanks but as a non accountant I find this confusing trying to establish a current PE. I notice gearing is around 33%. Is this high?

[Snow Leopard]

So big questions, and on which we will base our current and future values for this:

How are they achieving such rapid growth in numbers?
What pace can they sustain over the next few years?

Best Wishes
Paper Tiger

[Beagle]

Depends on whether one uses Reported NPAT or underlying earnings

I reckon NPAT for F16 will be 55 cents so on a PE of 9.2 forward earnins

Isn't that ridiculous

PS - roger says F15 underlying earnings will be 25.5 cents (earlier post) so on this basis on a PE of 20

Which is clearly cheap in my view for a company with a compound average growth rate of 44% for the last 5 years currently growing underlying earnings at 44%. PE of 20 is only the market average for the NZX50.

[Beagle]

So big questions, and on which we will base our current and future values for this:

How are they achieving such rapid growth in numbers?
What pace can they sustain over the next few years?

Best Wishes
Paper Tiger

They internalised their construction over the last couple of years and have lifted the build rate from 300 units per annum to 400 and expanded the development margin.

I anticipate a further lift in build rate in the next two years and further economies of scale with their procurement and development programme so I am comfortable with my assumptions of sustainable growth at about half the five year average they've experienced to date 44/2 = 22% CAGR for the next half decade. They have 7 years of land bank at the current build rate. I reckon they'll only take 5 years to utilise that.

[winner69]

So big questions, and on which we will base our current and future values for this:

How are they achieving such rapid growth in numbers?
What pace can they sustain over the next few years?

Best Wishes
Paper Tiger

That South African sprinter Van Niekirk at the Olympics was amazing this morning

Smashed he 400m world record that Malcolm Johnson set 17 years ago

Now the 2nd man to break 10 secs for 100m and 20 secs for 200m and now 44 secs for 400m

Summerset a bit like that - extra distance not really slowing this guy down

[Beagle]

Back over 460 and heading to new all time highs .....and over 5 bucks ....pretty soon

Quarterly sales out later this week should confirm on track to meet, if not exceed, the 400 new units they said they would achieve this year

And property prices still looking pretty good as well.

You're a legend mate. This from 5 July just over a month ago.... and some doubting thomas's thought we were really silly talking about $6 by Christmas

[Beagle]

Based on the revaluations that Ryman have reported i think i need to revisit my Summerset FY16 forecast

Probably NPAT will now be over the $120m forecast - heck thats more than 55c eps, enough to support a $6 share price later this year

This from 20 May 2016...pure Gold that post mate.

[winner69]

Roger - it's your mate Ben Graham that brings it home to me why Summerset has been a buy over the last few years and probably for a few more years as well

Not his formula but this piece of advice - 'Buy not on optimism, but on arithmetic.'

The arithmetic has always said a buy ... and I have faith in my arithmetic

[Raz]

I don't comment on this one as it is obvious where the share price is heading however...the movement of late is showing a touch of optimism