Over the past two years IFT has outperformed the NZ50 by a touch under 50%. My favourite NZ stock by a country mile.
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Over the past two years IFT has outperformed the NZ50 by a touch under 50%. My favourite NZ stock by a country mile.
If I am correct, IFT’s ROE is not that high and 5-year average is around 11.4% and Its net debt to equity ratio is also considered high around (41.5). To pick a company for the long run at least there should be ROE of around 15(five-year average). ROE Over 20 is much better. If I decide to select a stock for the long run, I will go with high ROE companies with a strong balance sheet. I will also make sure not to pay very high PE to pick stocks while paying attention to the debt level.
https://www.investorsfriend.com/return-on-equity/
“If we are not expecting the P/E to increase, then the only way a stock’s price can grow is if the earning per share grow. Therefore it is clear that a great stock to invest in should be one that is expected to have a rapid growth in earnings per share.
Clearly then, it is important to be able to predict which companies will show high growth in earnings per share.
All else being equal,companies with a high return on equity will show the highest growth in earnings per share.”
Appreciate your great analysis in this regard.
"US$8 billion capex plan to deliver on Longroad’s development
plan through 2027 and generating US$600+ million of EBITDA from 10 GW"
"Development plan through 2027 will require ~US$8 billion of incremental capex
investment
• Expect 85-90%, or US$7.0 billion, of capex to be funded via non-recourse project
financings (i.e., tax equity and debt financings);
̶ ~US$4 billion of the project financings expected to be sourced from tax
equity banks that Longroad has traditionally used (e.g., US Bank and PNC);
tax equity market remains constrained which creates competitive advantage
for experienced developers like Longroad
̶ ~US$3 billion would be sourced by traditional bank debt (e.g., Keybank, CIT,
HSBC, Morgan Stanley, MUFG, CIBC)
• Remaining US$1.0 billion would be funded via additional Longroad equity,
additional holding company debt or cash distributions from Opco"
So 10% equity(or debt) for $8b development through to 2027
A lot of tax breaks
$800 m equity generating $600m EBITDA in 2027
I want in, but NZ market looking verrrry shaky...
I used to worry about when or not to enter but with IFT I purchased in 2016 (3600), 2018 (3600), 2019 (965), 2020 (765) and with a couple of reinvestments (68 & 86) my average price is $3.45. My Sharesight records show I have received 6.31% divies and 23.56% capital gain for an overall return of 26.42%pa. It's making the decision is the hard bit but in my case I am a very happy investor in IFT.
"Harbour Navigator: The ‘Longroad’ to solar success"
https://www.harbourasset.co.nz/resea...tary/longroad/
I like the line 'these investments may seem large relative to investments in New Zealand'.
Go Infratil!
Live in denial and miss out on big opportunities. It’s up to you