No doubt..But no new shareholding notices?
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I wonder why the market has decided to only allow a PE of 8-11 for Evolve, small cap growth stock and a great yield.
Can anyone shed some light on why this stock is so cheap?
IMO because their growth is only at approx their cost of capital. So they aren't really growing. they need to prove they can re invest and earn returns at a rate significantly higher than their cost of capital.
Having said that I still think they are below fair value atm.
It is priced for flat growth, dividend yield is looking close to 7% for 2017... I am trying to look for a downside here!
ROCE of 10% not bad, even if they stopped expanding... the distributable cash flow will continue to grow and will come right back to shareholders... again, where is the downside?
Discl not held, possibly soon though.
Even Regal now disclose they've reduced their interest in EVO
I remember thinking at the time of reading that article it sounded like soppy bollocks to me, yes, running a business is difficult, no more difficult than anyone else has it...
" having to balance shareholders, staff and the parents was hard! " - yea no sh!t
Good for the very wealthy Wright family who were not after profits, back in the real world of the free market, there is money to be made in this sector for a long time to come...
Lets look at EVO's current metrics and the likelihood of continued earnings performance, high chance of shareholders being rewarded here.
Balancing multiple interests is part of any business. The listed retirement sector does well enough, you could use the same quote and just replace parents of the kids with kids of the parents....