Ebos Limited EBO

[percy]

Can someone help me out ? I'm not a financial wiz.
Why / how can the NTA/Share be negative ? See below for EBOS. -56.47 cents

Is this a reflection of the level of borrowings that a company has.
Sorry if this is a dumb question. Data from ANZ Securities.

EBO.NZX - Ebos Group Limited Ordinary Shares

Total Issue:
152,539,304
Market Capitalisation:
$3,203,325,384 (@2100)
Earnings/Share:
92.53 cents
Price/Earnings Ratio:
22.7
NTA/Share:
-56.47 cents
Dividend/Share:
NZD 66 cents
Dividend Yield:
3.14%
1-Week Range (Low - High):
2039 - 2100
4-Week Range:
2000 - 2100
26-Week Range:
1730 - 2100
52-Week Range:
1700 - 2100

They had to pay a great deal for goodwill and intangibles when they brought out other companies.

[winner69]

RTM not a dumb question

The EBO balance sheet is loaded up with more than a million dollars of intangibles - these being goodwill etc generated from the acquisitions over the years. When you acquire a company you don’t usually buy much in the way of ‘tangible assets’ - you buy brands, customers etc (intangibles)

Some hate seeing high levels of intangibles but if companies like Ebos didn’t have intangibles they wouldn’t have a business.

[RTM]

RTM not a dumb question

The EBO balance sheet is loaded up with more than a million dollars of intangibles - these being goodwill etc generated from the acquisitions over the years. When you acquire a company you don’t usually buy much in the way of ‘tangible assets’ - you buy brands, customers etc (intangibles)

Some hate seeing high levels of intangibles but if companies like Ebos didn’t have intangibles they wouldn’t have a business.

Thanks Winner and Percy,

I wondered about that after I posted. And if I am understanding correctly, these intangibles are worth considerably more than EBOS's physical assets, buildings etc. Are loans included in this number as well ?

I see its a big number, from the auditors report.
"The Group has $1,021m of goodwill and $133m of indefinite life intangible assets, including brands and a franchise network, on the balance sheet at 30 June 2018 as detailed in note B1 to the financial statements."

[winner69]

Thanks Winner and Percy,

I wondered about that after I posted. And if I am understanding correctly, these intangibles are worth considerably more than EBOS's physical assets, buildings etc. Are loans included in this number as well ?

I see its a big number, from the auditors report.
"The Group has $1,021m of goodwill and $133m of indefinite life intangible assets, including brands and a franchise network, on the balance sheet at 30 June 2018 as detailed in note B1 to the financial statements."

Yes it accounts for loans.

You obviously with ANZ. They like people understanding things like NTA and in their Education Dept they have this little article

https://www.anzsecurities.co.nz/dire...spershare.aspx

[RTM]

Yes it accounts for loans.

You obviously with ANZ. They like people understanding things like NTA and in their Education Dept they have this little article

https://www.anzsecurities.co.nz/dire...spershare.aspx

Thanks. Yes, with ANZ, had not stumbled across this before. I think its confused me some more.
Will stew on it for a bit before I ask another dumb question ! Appreciate the help.
RTM

[winner69]

Thanks. Yes, with ANZ, had not stumbled across this before. I think its confused me some more.
Will stew on it for a bit before I ask another dumb question ! Appreciate the help.
RTM

I wouldn’t worry about NTA at all ....to me it doesn’t mean much at at all.

I’d say you would be better off looking Book Value which is the same as Shareholder Equity. This gives you a far better guide to what the net assets of the company are (from an accounting point of view)

For EBOS that’s about $8.00 per share. The market is valuing that at $20 plus which means everyone is expecting the company to continue to make decent profits ....ie create value

[percy]

The result was not what I was looking for.
Have sold.

[LAC]

The result was not what I was looking for.
Have sold.

Aaaah you know u will just re-enter at a higher price in future U always do

[percy]

Aaaah you know u will just re-enter at a higher price in future U always do

Yes if there is good reason to I will.!!...lol.

[macduffy]

The result was not what I was looking for.
Have sold.

Looks like EBO is suffering from the law of large numbers. As issued capital and NPAT grow it gets harder and harder to post similar percentage increases as those when the company was much smaller. My biggest concern is whether becoming more reliant on the pharmaceutical business in Australia - which isn't yet reflected in results - exposes EBO to greater governmental/regulatory risk than in previous years.

I sold a few in July but EBO is still one of my biggest holdings.