Revenue slightly up (as per analyst consensus), earnings flat-lining though (looking worse than analyst consensus if the first HY is representative for the FY). it appears that all these ugly costs like consumables, employee benefits and similar are growing faster than revenue.
Could be a one - off due to timing the account, but could as well turn into a bad habit.
On the other hand - they discovered that the "underlying profit" grew nicely compared to last years underlying profit. Must be all nice and fluffy, than ;
----
"Prediction is very difficult, especially about the future" (Niels Bohr)
Need to update my numbers but first impression is that its not good. Since May 17 (3 quarters) total capital employed has increased about $75m (increases in both debt and equity) but EBIT not moving up much. Seem to be spending heaps acquiring things but not making much more money.
Will look at the detail one day soon
Lot of moving things around in the accounts eh -- continuing, discontinued, underlying etc etc
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Equity and debt increasing (invested capital) as time goes on and revenues growing but EBIT margins and return on invested capital both trending down....not good. Buying business for little extra returns.
Not ‘normalised’ or ‘underlying’ but just as reported but left out gains on asset sales
Would want to see improved financials before I would get really interested. Current p/b of ~1 not deserved on fundamentals and even the perceived low PE and good yield is not seductive enough for me.
That’s how I see it anyway
Key ratios below
Last edited by winner69; 23-12-2018 at 08:31 AM.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Truly amazing ABA share price was about 10 bucks this time last year ...but not surprising on financial performance it’s about the same as it was 5 years ago
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
Truly amazing ABA share price was about 10 bucks this time last year ...but not surprising on financial performance it’s about the same as it was 5 years ago
Didn't they defend in 2016/2017 with teeth and claws against a takeover bid for over $10 per share? Looks like the board has some explaining to do what happened with shareholder value, but than - I am probably just not bright enough to understand their deep value game ;
Must be amazing now.
----
"Prediction is very difficult, especially about the future" (Niels Bohr)
Part of the answer is.. How long is a reasonable period to integrate new sites, integrate systems, people and culture and start to realise gains..?? 6months, 12? 18? 24?. Similar story for Z with Caltex sites, EVO etc. How long before SKC assets such as ICC really bears fruit etc... They are shifting from acquire to integrate so as a sharehder/owner I'm OK with 24 months personally for scale to materialise...yes, It is a heavy expertise and people intensive play..so acquisition approach is not without risk and reward... Have to balance against opportunity, market size, brand etc. Current Yield and DRP 3% reduced SP enough to entice buy n hold for 2 years from me.
Part of the answer is.. How long is a reasonable period to integrate new sites, integrate systems, people and culture and start to realise gains..?? 6months, 12? 18? 24?. Similar story for Z with Caltex sites, EVO etc. How long before SKC assets such as ICC really bears fruit etc... They are shifting from acquire to integrate so as a sharehder/owner I'm OK with 24 months personally for scale to materialise...yes, It is a heavy expertise and people intensive play..so acquisition approach is not without risk and reward... Have to balance against opportunity, market size, brand etc. Current Yield and DRP 3% reduced SP enough to entice buy n hold for 2 years from me.
Fair enough Hamish
It’s just that many of companies that undertake these market consolidation strategy by acquiring lots of small participants often don’t end up as a good story, especially when they stop acquiring.
Pity you mentioned EVO ...case in point.
“ At the top of every bubble, everyone is convinced it's not yet a bubble.”
It’s just that many of companies that undertake these market consolidation strategy by acquiring lots of small participants often don’t end up as a good story, especially when they stop acquiring.
Pity you mentioned EVO ...case in point.
Hmm yeah, typed EVO and thought to myself.. brave to note. Yet, it's highlights the risk / reward so is valid counter-side to consider..
Does anyone have a view on this company? I see that the price ended last week at $5.95 per share, and has a dividend yield of over 6% (according to directbroking).
;
Reply With Quote
Originally Posted by winner69
;
Bookmarks