-
26-08-2013, 11:25 AM
#1861
I particularly like the earnings guidence for next year of NPAT $34 - 37m. This = earnings of 8.7 - 9.5cps. Say @ a PE of 12 a share price of $1.04 - $1.14 would be expected. Pick your own PE
-
26-08-2013, 11:35 AM
#1862
Originally Posted by SCOTTY
Pick your own PE
The 4 Pillars in Australia are all trading in the range of PE 14.49-16.9.
Not saying HNZ should be the same.
-
26-08-2013, 11:42 AM
#1863
The result confirms all is on course:
"The on-going growth of core assets,coupled with a continuing reduction in cost of funds,has positioned Heartland to deliver sustainable profitability in future years."
I think that statement sums it up correctly.
-
26-08-2013, 11:46 AM
#1864
Originally Posted by CJ
The 4 Pillars in Australia are all trading in the range of PE 14.49-16.9.
Not saying HNZ should be the same.
Projected profit is an increase of 37% to 49%.Add to that dividends and comparing Heartland to The 4 Pillars in Australia may be under selling/valueing HNZ?!
Say earnings are at the top end 9.5cents and PE of 18 = SP of $1.71.
"We are well positioned," !!!!!
-
26-08-2013, 12:26 PM
#1865
Originally Posted by CJ
The 4 Pillars in Australia are all trading in the range of PE 14.49-16.9.
Not saying HNZ should be the same.
Originally Posted by percy
Projected profit is an increase of 37% to 49%.Add to that dividends and comparing Heartland to The 4 Pillars in Australia may be under selling/valueing HNZ?!
Exactly - as I said, not saying they should be the same
Just keep your price forecasts quiet as I am thinking of topping up.
-
26-08-2013, 12:35 PM
#1866
Originally Posted by CJ
Exactly - as I said, not saying they should be the same
Just keep your price forecasts quiet as I am thinking of topping up.
Sorry about that.!!!
Trying to remember how to work out the PEG.Then the better ratio is the PEG including divie.PEG + divie
Sure you can work them out for me,once you have done your buying..
Just hold off until I have picked up 10,000 at 87cents.Thank you.
Is it 18[pe] divided by growth 37 [or49] + 5 [divie]\
ie 18 divided by 42 = .42.
or 18 divided by 54 =.33.???
Last edited by percy; 26-08-2013 at 12:40 PM.
-
26-08-2013, 01:23 PM
#1867
You can go ahead now CJ.Thanks for holding back.Brought 10,000 @87cents.Also been onto Link market services and elected full dividend reinvestment for my total holding. Did it on line.Wife likes the cash,so she will not go for it.
-
26-08-2013, 01:40 PM
#1868
EBIT to Interest Expense FY2013
Originally Posted by Snoopy
Updating for the full year result FY2012
EBIT (high estimate) = $205.148m-$65.547m= $139.601m
Interest expense is listed as $121.502m.
So (EBIT)/(Interest Expense)= ($139.602)/($121.502)= 1.15 < 1.20
Result: FAIL TEST but an improvement from the HY2012 position.
Results are out so time to have another look at those Heartland banking covenants.
Updating for the full year result FY2013. The EBIT figure is not in the financial statements. So I will use 'interest income' as an indicator for EBIT, once I have taken out the selling and administration costs
EBIT (high estimate) = $206.349m-$70.347m= $136.002m
Interest expense is listed as $110.895m.
So (EBIT)/(Interest Expense)= ($136.002)/($110.895)= 1.22 > 1.20
Result: PASS TEST, a significant improvement from the FY2012 position.
SNOOPY
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
-
26-08-2013, 01:50 PM
#1869
Originally Posted by SparkyTheClown
I stand by my intrinsic value of $1.48 from the other day . I think this is grossly undervalued at the moment. People are playing safe harbour with HNZ based on NTA, which is understandable due to the property lemons in the non-core book. But I think this is suitably accounted for.
Totally agree. It is the future earnings that should be driving the share price. The company has given nice forecasts for FY14. I believe a re-rating has yet to occur on this stock based on those future earnings. HNZ is one of the few NZX stocks that show some VALUE and GROWTH. (others I like are SKL, CMO, TUR)
DYOR
-
26-08-2013, 02:07 PM
#1870
Underlying Gearing Ratio FY2013
Originally Posted by Snoopy
The underlying debt of the company according to the full year statement of financial position is: $33,802,000m.
To calculate the total underlying company assets we have to (at least) subtract the finance receivables from the total company assets. I would argue that you should also subtract the problem 'Investment Properties' and the unspecified 'Investments' from that total:
$2,348.69m - ($2,078.28m +$55.50m + $24.22) = $190.09m
We are then asked to remove the intangible assets from the equation as well:
$190.09m - $23.00m = $167.09m
Now we have the information needed to calculate the underlying company debt net of all their lending activities:
$33.8m/$167.09m= 20.2% < 90%
Result: PASS TEST
I note that the relative debt has increased since the half year reporting date. However it is still well within acceptable levels. I would the debt position to worsen during the year because of all the deferred branch transformation expenditure that was shunted into the FY2013 year. It will pay to keep an eye on this figure.
The underlying debt of the company according to the full year statement of financial position is: $33.673m+ $2.859m = $36.532m
To calculate the total underlying company assets we have to (at least) subtract the finance receivables from the total company assets. I would argue that you should also subtract the problem 'Investment Properties' and the unspecified 'Investments' from that total:
$2,504.627m - ($2,010.376m +$58.287m + $165.223m) = $270.741m
We are then asked to remove the intangible assets from the equation as well:
$270.741m - $22.963m = $247.778m
Now we have the information needed to calculate the underlying company debt net of all their lending activities:
$36.532m/$247.778m= 14.7% < 90%
Result: PASS TEST
The position has improved significantly over the last year. Looks like the debt position has not worsened during the year because of all the deferred branch transformation expenditure that was shunted into the FY2013 year as I feared.
Last edited by Snoopy; 28-07-2018 at 01:45 PM.
Reason: Correct last calculation
Watch out for the most persistent and dangerous version of Covid-19: B.S.24/7
Tags for this Thread
Posting Permissions
- You may not post new threads
- You may not post replies
- You may not post attachments
- You may not edit your posts
-
Forum Rules
|
|
Bookmarks