Bravo indeed to sb888!
And wonderful to see one of the stocks creating so much angst and negativity on the NZX, MFB, make a positive start to its F25 year.
Long may it continue.
Dis. Not a holder but pleased for holders.
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Showing resilient profits and margins through a consumer spending pullback, while so many meal kit operators around the globe are burning cash.
Reduced debt and resuming dividends - more ticks in boxes.
Time for a market re-rate? Upwards this time perhaps!?
Thanks everyone! A great result by MFB, I wasn't expecting my estimate to be that exact, but pretty pleased it turned out that way. As we expect revenue will be down on prior years due to reduced spending and bargain box taking the front seat. Dividends has resumed with 0.5 cent dividend, which predicts a healthy outlook going forward and debt reduced to $12m, which they will continue to reduce going forward and lower interest expenses. With a market cap of $30m and $6 NPAT, they are currently trading at a PE of 5, which is quite undervalued as I expect them to build on this result in FY25.
My view of FY25 is revenue will continue to drop slightly, but with costs being more stable H1 FY25 should generate a larger profit then the prior year since food cost this year particularly on the vegetable side has been lower than the prior year, customer numbers for the first 2 months for FY25 have largely remained the same and with debt being reduced at a good rate, they could reduce it by another $5m in FY25 to having net debt of $7m.
FY25 Expectation
Revenue $155m - $160m
NPAT $7.5 - $8.5m
Well done Silver. Great call.
Maybe just maybe the active customers have stabilized? If so fair multiple 6-8? So trading at 5x its undervalued