Sitting on a PE around 7.5x at that guidance. Also you'll note the word "exceed"... a smart CEO would know the true expectation is more like $165-170m.
Looking forward to future ongoing large cash distributions.
Shareprice should double over next few months to catch up
Might even get to 4 bucks today
Looking through the impacts of the wage subsidy and one off restructure costs the 'true' ongoing PE is probably closer to 9 or so? Either way, very good value.
no doubt this has been discussed a lot, but totally makes sense to use the adjusted NPAT figure - that is the actual profit from operations generated in this financial year, before they repaid $67.6million in wage subsidies that was received during the previous financial yEAR.
So $160 Million NPAT is the real figure.
Also, management said they will be paying "at least 70% of the group's full year adjusted net profit" as dividends, which at $160 million NPAT will be "at least" $112 million+ in dividends this year, which means at current share price the gross dividend yield is 9.4%.
very happy with the update , big margins should mean big dividends
Group gross profit margin was 35.5% for Q3 FY21, up 295 basis points on Q3 FY20 and up 196 basis points on Q3 FY19. Group gross profit margin for the year to date ended 2 May 2021 was 36.0%, up 267 basis points on the same period last year, and up 320 basis points on the same period in FY19.
i think its cheap at 7.5 p/e with attractive div yield and scope for bigger dividends based on there strong margins.
If we include the Feb special dividend in the planned 70% dividend distribution of adj-NPAT, then end of financial year dividend will be at least 18c per share for a total of 36c in dividends paid for the entire year. Potentially higher.
Good strong update, very happy with that. $160m looks very conservative...good that some companies know how to be conservative. Looking forward to a guidance upgrade in due course.
Ecclesiastes 11:2: “Divide your portion to seven, or even to eight, for you do not know what misfortune may occur on the earth.”
Ben Graham - In the short run the market is a voting machine but in the long run the market is a weighing machine
If we include the Feb special dividend in the planned 70% dividend distribution of adj-NPAT, then end of financial year dividend will be at least 18c per share for a total of 36c in dividends paid for the entire year. Potentially higher.
36c is possible all right based on 60 - 70% payout of npat therefore a 14% gross dividend. not bad compared to 1% in the bank if this is how it pans out
Originally Posted by JohnnyTheHorse
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