WHS should do okay but is not my preferred retail investment
Quote:
Originally Posted by
Panda-NZ-
Good call. PE for whs is still rather low.
It was super low when the share price was $3.30 and the company was looking at over $170m net profit.
Now the share price is around $4 and consensus for the current year is $126m and long term interest rates have moved up very sharply I would argue the PE is about right for a company with a modest projected growth rate. (average broker forecast eps is 37 cps in FY22 and taking it all the way out to FY24 to grow to 40 cps).
https://www.nzherald.co.nz/business/...3AK2E2RNFPA3E/
Regarding future dividends their target is not less than 70% of earnings so 70% of 37 cps suggests dividends of about (37 x 0.7) = ~ 26cps in FY22, well down on those enjoyed in the last year. Fair value with modest growth prospects is my assessment. It was very cheap at $3.30.
26 cps fully imputed = 36.11 cps gross = 9% gross so that should keep dividend hounds happy but I prefer HLG prospects and think their slightly higher metrics does not encapsulate their significantly superior growth prospects with Glassons properly or their vastly superior online and distribution capabilities. I foresee really good things happening for HLG over the next few years.