KMD - Kathmandu

[winner69]

If you look at FY20 cashflows you can see how one could get excited about KMD. They generated $73m. So if one day soon they got back to this sort of cash cow level at todays market cap of $611m it looks pretty good. $73m/$611m= 12%. Double digit cashflow yield good aye

This year they generated $24.6m fcf. Not very good. Paid out a dividend of $43m. Used debt to pay it.
One could think this big divvy is a good sign that management are confident the cashflows will one day get back up towards $70m level. Otherwise why payout so much cash?

SP has bounced nicely from the low of $0.77 back to $0.86 now.

I still think half year has been flagged as poor so this SP jump will be short lived imo and no need to rush in to buy.

Cash flows weren’t too bad before FY20 either rawz …before acquisitions

Seems they’ve been unable to turn these acquisitions into decent cash flows …..selling heaps more and having less cash left over at end of day

Ok, events have to some extent been against them but even so financial performance is a bit a worry. Does those charts I posted re Oboz and Kathmandu worry you?

I reckon jury still out on whether KMD management can get things back to where they should me …until they do share price will disappoint

[Rawz]

Cash flows weren’t too bad before FY20 either rawz …before acquisitions

Seems they’ve been unable to turn these acquisitions into decent cash flows …..selling heaps more and having less cash left over at end of day

Ok, events have to some extent been against them but even so financial performance is a bit a worry. Does those charts I posted re Oboz and Kathmandu worry you?

I reckon jury still out on whether KMD management can get things back to where they should me …until they do share price will disappoint

Yes they make for poor viewing. No growth.

A no growth P/E is about 8? Percy said the other day Craigs FY25 eps estimate is 9.67. Put the no growth P/E multiple of 8 on that and you get 9.67*8= 77 cents share price. thats what the low was last week or so. thats interesting

[winner69]

Yes they make for poor viewing. No growth.

A no growth P/E is about 8? Percy said the other day Craigs FY25 eps estimate is 9.67. Put the no growth P/E multiple of 8 on that and you get 9.67*8= 77 cents share price. thats what the low was last week or so. thats interesting

Not that’s interesting …….it’s that’s spooky eh

[Azz]

Not that’s interesting …….it’s that’s spooky eh

Market efficiency! :-)

[percy]

Craigs have eps rising from 6.09 in 2023 to 6.7 in 2024 an increase of 10% then increasing 44% to 9.67 in 2025.
Market Screener,................5....................7... .................................40%.............. ........42.85% to 10 ............,

There is very strong eps growth.

[Sideshow Bob]

I'd just like to see Rod on the board, even though only 6.75%.

Or is that putting the wolf into the chicken coop??

[winner69]

I'd just like to see Rod on the board, even though only 6.75%.

Or is that putting the wolf into the chicken coop??

Think you summed it up nicely

Rod did say he was ‘happy’ with how they ran the place but with current profits not much different from shortly after he offered to take them offer he might feel differently

Probably he’s holding on for share price to improve to get out … so like everybody hoping they can do better than Craig’s forecast

[winner69]

I still can’t get over that KMD made about about the same this year as they did in 2017 even though since then they spent about $100m for Oboz and $368m for Rip Curl …..nearly half a biliion for no gain.

Could say huge potential if they get the acquisitions to work and deliver what they indicated at the time ….. a value investors dream stock as long as they believe in hope

[winner69]

Chair David or is it Captain Kirk buys some more shares

Always a good sign when insiders buy

[BlackPeter]

I still can’t get over that KMD made about about the same this year as they did in 2017 even though since then they spent about $100m for Oboz and $368m for Rip Curl …..nearly half a biliion for no gain.

Could say huge potential if they get the acquisitions to work and deliver what they indicated at the time ….. a value investors dream stock as long as they believe in hope

No company can operate in a vacuum - and maybe the markets and the industry got ruffled somewhat since 2017, didn't they? Wasn't there some sort of pandemic with significant impact on factory operations (OBOZ), shop opening hours (lock downs) and tourism?

OK - I agree that some rugtrader (HLG) did somewhat better during this time, but its a different market - and many others did bite the dust.

Lets see, where they manage to go after Covid with tourism on again.