Why settle for 8% when you can get a guaranteed 10 and then have the worlds greatest take it all and reinvest it for you.
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Why settle for 8% when you can get a guaranteed 10 and then have the worlds greatest take it all and reinvest it for you.
Correct me if I’m wrong Beagle but don’t the reported NPAT numbers have tax taken out but in the cash flows they don’t have to actually pay anything as have tax losses to use up.
So the PE is real but there has been no actual tax paid hence no imputation credits available until it seems FY23
Thanks Beagle, much appreciated.
STU is a money printing machine when it has great management - it operates in an oligopolistic essential industry with a few key players determining margins and market shares.
Question investors have to ask is whether STU has the right management (like during Nick Calavrias's era) to maximize its oligopolistic positioning in the industry.
Buy when management buys :
http://nzx-prod-s7fsd7f98s.s3-websit...979/347129.pdf
My thoughts on yesterdays update.
Back last year I forecast EBIT of $50m for ye22. Guidance announced is not less than $45m.
Pleasing to see the margin improvement from 20.8% to 23% with operating costs as a percentage of sales further decreased. Costs have been drastically reduced with less sites and staff and a focus on profitable growth.
For those that think it’s all downhill from here.
No question the last few years have been a shocker, but if you look at history over the last 30 years you will find that STU has been consistently one of the higher dividend return stocks on the NZX and consistently traded on a much higher PE than current.
Today we have a diversified business with Fastening, Pipeing, Hurricane , Comflor and the highly profitable roofing division added over the years.
I know a lot of us brought under $1.00 and I’m not against taking a profit. However I think this stock is well worth holding with plenty of upside still to come. I’m sure it will continue to be one of the highest dividend returns with a real possibility of a takeover given the current pricing.
So I still see STU as one of the best opportunities on the NZX.
Then, there’re studies which show that high dividend yielding stocks bear up well better in stock markets during recessions.
https://www.investopedia.com/article...e-downturn.asp