If they can do normalized after tax profit of $173.4m that's exactly 50 cents per share eps and put's them (@$3.80) on a FY21 PE of just 7.6 which is crazy cheap compared to any other retailer on the NZX.
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If they can do normalized after tax profit of $173.4m that's exactly 50 cents per share eps and put's them (@$3.80) on a FY21 PE of just 7.6 which is crazy cheap compared to any other retailer on the NZX.
and with a div yield in the double digits , if confirmed at end year i see a big re-rate on the news. it would be the biggest div payer from a sound company available. every tom, dick and harry on the planet probably want in lol esp those housewife's from japan who love there yield
HLG share price should be over 10 bucks
Sector comparisons below. HLG PE is a guess of this years eps, RBD is included because its part of Snoopy's retail allocation in his portfolio. The number on the right is what WHS share price would be if on same multiple
BUT MICHAEL IS CHEAPEST OF HALL
PE
WHS 7.6 ....$3.80
BGR 20.3 ....$10.15
MHJ 7.0 ...$3.50
HLG 11.8 ...$5.90
RBD 36.2 ...$18.10
Not saying WHS and MHJ should be in anyone’s long term portfolio but surely should be in a short term portfolio. Not like they can trade any cheaper.. couldn’t go to 6 P/e’s….? Right?
So little downside.. vs reasonable upside + dividends
Okay...reluctantly...my 2 cents worth.
MHJ had a shocking track record before Covid came along. They sell shiny things that by and large people don't need but simply make people feel better so its only natural that people will spend up large on frivolous shiny things to make themselves feel better to boost their morale. I believe the house brand watches they sell are absolute rubbish.
I think MHJ have benefitted more disproportionally than other retailers, certainly their financial results once Covid started have looked dramatically transformed compared to pre covid. They have a heck of a lot of stores in Australia compared to elsewhere and most of those stores are currently in lockdown and many have been for several months.
Comparing apples and oranges is what comparing WHS and MHJ is.
WHS sell basic items that people need and they have no stores overseas.
There are plenty of investors who are refusing to get into retail stocks while the threat of lockdowns remain. These people will only get back into it after extended lockdowns are a thing of the past. Of course once that time comes they would have missed out on the likely rally in retail stocks.
All I will say is that New Zealand and Australia are on track with their current vaccine rollouts to achieve near full vaccination (eg the ~90% of the eligible population who aren’t stupid enough to refuse one) within 10 weeks. I think the implications of that eventuality are obvious in terms of the future likelihood and length of lockdowns.
NZ has another ~4.2 million doses to give out to finish vaccinating the 12+ population, and is averaging over 70k per day currently. 4.2 million / 70k is 60 days, so technically should be over 90% eligible vaccinated by the end of October, but I imagine going from 80% -> 90% will take a longer time as you start to get into the “vaccine hesitant” & denial morons at that stage.
I think you are on the money LEK. Would give you a reputation point but apparently have to spread it around sorry.
COVID is good for retail as it has turned out. The 2020 lockdowns produced bumper FY21 profits. Not sure why 2021 lockdowns wont produced bumper FY22 profits?????
If the WHS multiple goes up I reckon it will drag MHJ up with it so no worries MHJ investors (not that it cant do it on its on merit despite what master beagle says).
W69 says RBD is retail stock? omg i am overweight retail (WHS, MHJ, HLG, RBD) is TRA retail? If so I am severally lacking diversification :ohmy: