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 :D
Printable View
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 :D
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.
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.???
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.
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
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
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.
So we are all happy with the result, and the ShareChat site heads up as below.
Go figure !
Heartland FY profit slides 71 percent to $6.9 mln on charges to take distressed assets in-house.
http://www.sharechat.co.nz/article/3...s-in-househtml
Yep...can't argue with that !
Just an "interesting" headline and focus on a great report.
Just typical of the business commentary we too often get in the media. The headlines far too often do not represent the issue they are reporting on, just like this headline tells us very little about the real contents of the announcement. They had the same headline in the NZ Herald. Just lazy media.
Now we come to the most important page of the results announcement, our once a year window into asset quality. Looks like the reporting format has been changed, which makes year on year comparisons difficult. However, I read the total of the Grade 6 'monitor' assets to have increased from $185.315m to $198.370m. This is not a very good position to be in. I note on that same table there is a provision for collectively impaired assets of $15.961m which is up from $8.032m in FY2012. But that provision increase is not enough to cover the accompanying increase in 'monitor' assets.
Meanwhile the sum of Grade 7,8 and 9 assets is now $67.313m down from $80.927m, which is a positive. Overall though 'problem assets' (sum of grade 6,7,8 and 9) have increased slightly. I will have to take some time to think through how all this relates to the overall equity position of HNZ. But I was hoping for a bigger improvement in the doubtful loan book than this. I don't think I will be putting any money into HNZ based on this debt book result alone.
SNOOPY