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05-06-2012, 02:32 PM
#1001
Anyone out there own a retailer that is doing better? It looks like when I was bought out of the Warehouse at $5, my decision to reinvest those proceeds to boost my RBD holdings was a good one.
Briscoe's latest annual result produced a margin of 6.2% (NPAT $27.5m/Revenue $438m).
Unfortunately, I only hold a few from the IPO - never bought any more!
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05-06-2012, 02:57 PM
#1002
HLG has a 8% margin (NPAT9,028/ revenue $108,572) excluding its hedge gains - from the 6 month unaudited accounts. (8.9% from the 2011 full accounts)
Would you pay twice as much to buy HLG (8% margin) than you would to buy WHS (4% margin)? YOu would need to consider volatility of margins etc???
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05-06-2012, 03:57 PM
#1003
Originally Posted by CJ
HLG has a 8% margin (NPAT9,028/ revenue $108,572) excluding its hedge gains - from the 6 month unaudited accounts. (8.9% from the 2011 full accounts)
Would you pay twice as much to buy HLG (8% margin) than you would to buy WHS (4% margin)? You would need to consider volatility of margins etc???
With HLG you are in the lead so far CJ. 8.9% is very impressive, particularly when HLG management were grizzling about high shopping mall rents over that time period as I recall.
However, I think your point on volatility of margins is valid.
Over a very short time frame, co-incident with a sale for instance, you may very well generate a fantastical margin figure. Over longer time-frames such blips should even out. That is why IMO using a six monthly figure is probably not a fair comparison.
My gut feeling (which may be wrong!) is that food retailing is likely to be less volatile that general retailing.
This is one reason why in tougher times I feel comfortable with my own retail investment sitting in food.
SNOOPY
Last edited by Snoopy; 05-06-2012 at 04:04 PM.
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
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05-06-2012, 04:23 PM
#1004
Originally Posted by CJ
HLG has a 8% margin (NPAT9,028/ revenue $108,572) excluding its hedge gains - from the 6 month unaudited accounts. (8.9% from the 2011 full accounts)
Would you pay twice as much to buy HLG (8% margin) than you would to buy WHS (4% margin)? YOu would need to consider volatility of margins etc???
Using inventory turns to get some business economic insights, HLG gets their 8% every 67.6 days compared to WHS who get their 4% every 89 days and
RBD an incedible/credible 2.7days for 6%. RBD probably smokes any retailer on the NZX.
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05-06-2012, 04:24 PM
#1005
Originally Posted by Snoopy
So the WHS margin is forecast to be somewhere near:
$64m/$1638m= 3.9%SNOOPY
Punters say the Red Sheds finding it hard to compete with Bunnings ..... last Annual Report for Bunnings in NZ to June 11 shows sales of $585m with NPAT of $2m ..... that razor thin margin of 0.3% puts WHS in good light eh
Maybe, just maybe, WHS ain't doing that bad
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05-06-2012, 07:04 PM
#1006
[QUOTE=winner69;375242]Punters say the Red Sheds finding it hard to compete with Bunnings ..... last Annual Report for Bunnings in NZ to June 11 shows sales of $585m with NPAT of $2m ..... that razor thin margin of 0.3% puts WHS in good light eh
Am I allowed to ask the question;Why bother?
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06-06-2012, 12:45 PM
#1007
Member
Does anyone have the margins for MHI already calculated? I would have thought their's were quite good. Not sure about their turnaround though.
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06-06-2012, 01:20 PM
#1008
Originally Posted by arcticblue
Does anyone have the margins for MHI already calculated? I would have thought their's were quite good. Not sure about their turnaround though.
2012 Half year 9% (NPAT 26,297 / Rev 288,846)
2011 Full year 8% (NPAT 39,985 / Rev 489,330)
Both ignoring currency movements which are reported below the line.
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06-06-2012, 02:01 PM
#1009
It's interesting that MHI has a very low turnaround, something like 312 days. Low turnover is something they have been consistent with and that's probably because they are a manufacturer as well as a retailer.
Last edited by h2so4; 06-06-2012 at 02:03 PM.
h2
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06-06-2012, 02:11 PM
#1010
Originally Posted by h2so4
Using inventory turns to get some business economic insights, HLG gets their 8% every 67.6 days compared to WHS who get their 4% every 89 days and
RBD an incedible/credible 2.7days for 6%. RBD probably smokes any retailer on the NZX.
Imagen the Chicken would be really Fowl after 3 days.
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