MFT - Mainfreight. Global Freight & Logistics

**RupertBear** · 10-02-2022, 04:17 PM

Originally Posted by Fiordland Moose

Do as you like BlackPeter - obviously this forum isn't for advice but for mulling over the pro's & cons and tailwinds & headwinds of the listed market.

the 'experts' you quasy deride as being out of touch with the market are just mindful of the elephant in the room - the freight rate boom that has directly contributed (in large part) to npat doubling in 2 years.

Ask yourself the following questions and be guided by your own perspectives
* will freight costs remain high forever or if they fall by how much and over what length of time
* mft doing a hell of a lot of good stuff in building out their footprint - how much of the increase in earnings is due to that and not the spike in freight rates and demand? if they continue to grow their footprint can they offset a potential decline in freight rates?
* how will rising interest rates impact sentiment around high PE companies
* how long is your horizon
* what is your commercial rational for holding them

I wouldn't be surprised if they beat consensus NPAT of 325 this year so there could be more good news to come - does that influence your perspective or is it moot in the longer term?

Always value your posts FM

I didnt take BP’s comment about “experts” quite as disparagingly as you have. But I certainly appreciate your thoughts on the “elephant in the room”.

My situation is similar to BP’s in that I bought into MFT @ $29 during the 2020 Covid sale. This is a long term hold for me and although I wouldn't consider buying at these levels I would regard any significant drop as a buying opportunity.

So happy holder at this point in time

**alokdhir** · 13-02-2022, 08:03 AM

https://www.stuff.co.nz/business/127...andemic-demand

**winner69** · 13-02-2022, 08:17 AM

Originally Posted by alokdhir

https://www.stuff.co.nz/business/127...andemic-demand

Nice story to read on ****ty weather wise Sunday

I don’t agree that ‘but Mainfreight remains the most expensive stock on the ’NZX’ bit …..PE of 24 seems pretty cheap to me. Whoever said that must be expecting Mainfreight profits to halve next year

**percy** · 13-02-2022, 09:05 AM

Originally Posted by winner69

Nice story to read on ****ty weather wise Sunday

I don’t agree that ‘but Mainfreight remains the most expensive stock on the ’NZX’ bit …..PE of 24 seems pretty cheap to me. Whoever said that must be expecting Mainfreight profits to halve next year

Direct Broking are showing MFT has a PE of 34.39.
Should they achieve a 80% growth in net profit, it means their PE ratio is less than half their growth rate giving a PEG ratio of just .429 .
1.00 is considered good.

**winner69** · 13-02-2022, 09:48 AM

Originally Posted by percy

Direct Broking are showing MFT has a PE of 34.39.
Should they achieve a 80% growth in net profit, it means their PE ratio is less than half their growth rate giving a PEG ratio of just .429 .
1.00 is considered good.

If you use expected earnings 340 (which 80% growth) you get forward looking PE of 25

Makes percy’s PEG 0.31 ……1 is considered good …….0,31 is considered well this is Mainfreight

**percy** · 13-02-2022, 10:22 AM

Originally Posted by winner69

If you use expected earnings 340 (which 80% growth) you get forward looking PE of 25

Makes percy’s PEG 0.31 ……1 is considered good …….0,31 is considered well this is Mainfreight

Crikey,MFT look more compelling than HGH.!!
If it was not for HGH's great divie.?

**alokdhir** · 13-02-2022, 04:12 PM

Originally Posted by winner69

Nice story to read on ****ty weather wise Sunday

I don’t agree that ‘but Mainfreight remains the most expensive stock on the ’NZX’ bit …..PE of 24 seems pretty cheap to me. Whoever said that must be expecting Mainfreight profits to halve next year

IMO in the context of the article ...expensive meant absolute dollar price ...most priced stock maybe they meant ...not expensive on P/E terms .