Don"t think luck is needed with this one.
Quote:
Originally Posted by
Beagle
RYM up 90% in the last 5 years (below their benchmark of doubling every 5 years) Note 15% compound earnings growth = double your earnings every 5 years.
I have found buying RYM shares on a forward PE of 23.5 or less underlying earnings as being the most rewarding times to buy and hold the company.
RYM currently trades at 28 times FY19 my estimated FY19 underlying earnings. I like the company but there is no way in the world I will pay 28 times FY19 underlying earnings most especially with this government running us the potential risk of major left field tax reform.
Good luck to holders.
Beagle RYM might look expensive compared to SUM if one looks at the annual reports and analyse the 2 companies the standard bean counter way.
However I perceive SUM as having a number of risk which effect RYM less or not at all.
A few examples, RYM grows approximately 15% per year. Any faster grow and the company increases the risk of growing pains.
I believe RYM pays their caregivers and nursers more than other outfits in this industry, also RYM has a higher ratio of caregivers to residents/patients than other in the retirement sector. The higher pay and more caregivers means that if government regulations increases requirements on minimum wages and or care givers ratios to residents/patients, RYM wont be effected as much SUM others.
RYM charges a max of 20% deferred management fee, others range between 24% and 30%. Therefore RYM got more room to increase this fee than all others.
There are more hidden gem in this company, to find them I would suggest you attend an investors information event or AGM.
I agree with you that SUM is a good company, however RYM in my mind is in a league above anything else in the industry.