Very solid result, pretty pleased with the double digit growth all round and a solid dividend on it's way...
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Very solid result, pretty pleased with the double digit growth all round and a solid dividend on it's way...
Current PE about 12
Building / construction related companies never really in favour so maybe priced about right.
So with earnings growth share price will be higher this time next, probably reflecting actual growth
But you never know it might even get back to 2 bucks plus again - not blue sky stuff, been there before
I would have left the slides showing H2 performance out of the presentation pack.
Anybody interested could have worked out that H2 normalised NPAT was DOWN 18% on last year ...hmm
Cash Flow for year pretty weak - increased working capital and pretty capital intensive business.
Business Desk headline
METROGLASS PROFIT DIPS ON AUSSIE EXPANSION COSTS, CAPEX LOOMS
Seems a fair assessment .....from an unbiased point of view
result matched what was expected , sounds like they still have issues converting margin out of there distribution centres and no figures given in guidance for next financial yr doesnt inspire confidence.
Ah yes... leave the NPAT and EPS decreases out of the bullet points, and have revenue as the first... number 1 sign things not being all so great...
Dividend payout creeping up to the 'maximum' while debt levels getting higher (although not yet at the concerning levels) and operating cash flows dramatically weaker (although at least they tried to explain 9.1m of the 10m decrease).
Also not much word on how things are 'really' going to be going forward (ie numbers), just lots of warm lovely words and pictures about glass and houses... number 2 sign things not being all so great
Forsyth were picking NPAT of 20.3 and a dividend of 8.2 cps (yes, after they announced the downgrade), so a miss on 2 key accounts, despite their forecasts already being downgraded
I suppose the PE takes account for this lacklustre, although expected result... still a little expensive in my view given no bottom line EPS growth... but no worries, this will all improve and back to $2 something... maybe it will be in the race with Arvida and Heartland winner69?
A reasonable result and shares seem about fair value all things considered to me. They need to convert sales growth into profit growth for the market to rerate this one.
Disc I have a small stake, not a high conviction stock for me.