HGH - Heartland Group Holdings

[percy]

In the past year HGH paid a final dividend of 5.5 cps,and an interim of 3.5 cps giving a total of 9 cps.
HGH have now increased the final dividend to 6.5 cps and Craigs are projecting a total dividend of 10.5 cps pa,therefore it looks as though the next interim could [if Craigs are right] be 4 cps,making up their total of 10.5cps pa..
Certainly looking better to own the bank, rather than having money in the bank....lol.

[Beagle]

Seems Beagle and Craig’s on same wavelength - HGH priced at about sector average and a good HOLD

That’s a solid endorsement going forward

Lots of other highly experienced investors on here also have the same rating. Its certainly priced slightly lower than the average Australian bank, its eps is growing slightly faster and its better capitalised to meet the proposed new RBNZ capitalisation standard. To coin a slightly overused phrase "well positioned" springs to mind.
Growth rate...12.2 cps in FY17 grown to 12.4 in FY18 and 12.9 in FY19 and a forecast fully diluted for estimated shares issued under the DRIP this year of approx. 13.5 cps indicated average growth in eps of 3.5% per annum. Pretty boring but I suppose boring is good and priced fairly at a foreword PE of about 11.7
Just hope the **** doesn't hit the fan overseas and we end up in a bad recession, because financials are never a good place to hide when that happens.

[Brain]

Another thing to consider is that Heartland has a market cap of 1billion cf Westpac and others of 100billion. Growth should be a lot easier for Heartland. Heartland is a minnow , still in short pants , it can make a very good living from the crumbs that fall off the big boys tables.

[iceman]

Another thing to consider is that Heartland has a market cap of 1billion cf Westpac and others of 100billion. Growth should be a lot easier for Heartland. Heartland is a minnow , still in short pants , it can make a very good living from the crumbs that fall off the big boys tables.

Absolutely correct Brain and that's exactly what they are doing, such as with the Aussie REL where the big boys put it in the too hard basket

[winner69]

Good to see the combination of credit policy and proactive provisioning saw the bad debts expense drop from $22.1m to $20.7m ....even though receivables and the like increased.

Helped profit a lot this year ...even though Shareholders Funds took a hit of $19m odd with the adoption of new standards.

[Beagle]

Probably fairer when looking at the growth rate (seeing as they have been through restructuring costs) to look at a five year view, 4 year historic and forecast fully diluted eps of 13.5 cps for FY20. In FY15 they made $48.163m on 469.9m shares = 10.25 cps. Growing eps to 13.5 cps over 5 years to FY20 if achieved represents a total of 31.7% eps growth or just on an average compound annual rate of 5.7% per annum. Good solid and dependable stuff.

[winner69]

Probably fairer when looking at the growth rate (seeing as they have been through restructuring costs) to look at a five year view, 4 year historic and forecast fully diluted eps of 13.5 cps for FY20. In FY15 they made $48.163m on 469.9m shares = 10.25 cps. Growing eps to 13.5 cps over 5 years to FY20 if achieved represents a total of 31.7% eps growth or just on an average compound annual rate of 5.7% per annum. Good solid and dependable stuff.

...and if they increase the divie to 10.5 cents in F20 that’s a CAGR of 7% pa over the same five years

EPS growth 5.7% pa and divie growth of 7.0% pa

Good eh

[percy]

Before any one spends too much time on projections,one should read page 28 of HGH's full year presentation,Full Year 2020 Outlook.
Best sumed up:
"Many of these costs are accelerated or one off and will generate asset growth and income in ensuring years".
As I said in an earlier post,HGH see opportunities, and are going for them.

[Snow Leopard]

For what it is worth, and it is worth a lot , is that you can expect a long term average total growth (eps+div) of 8.3% going forward and on that basis current fair value (cum final divvy) is $1.71 and will be at 30-Jun-20 (two divvies paid later) $1.75.

[Leftfield]

For what it is worth, and it is worth a lot , is that you can expect a long term average total growth (eps+div) of 8.3% going forward and on that basis current fair value (cum final divvy) is $1.71 and will be at 30-Jun-20 (two divvies paid later) $1.75.

Happy to have topped up a few more last week after the report was released (HGH now at 4% of my portfolio) and happy to have Snow Leopard and Percy's 'seal of approval' on HGH's latest results.

On page 22 under Australian Strategic revue there is mention of a "O4B pilot in Australia" which suggests the Open For Business loan platform is about to be expanded in Australia in FY20. Seems we are 'well positioned.'