Some more red shed consolidation is to be expected. Store within a store will bring more efficiencies as will more self scanning checkouts. Don't forget WHS encompasses the extremely well run Noel Leeming and up and coming Torpedo 7.
Brokers are forecasting net profit of $98.7m rising to $107m in FY23 and $115m in FY24. Any rationalization of the spend on themarket.com would see those figures grow by ~ 25% and lead to an immediate commensurate share price appreciation in my opinion.
https://www.marketscreener.com/quote...64/financials/
Where's the growth going to come from in FY23 and FY24 ? Well for a start its very unlikely there be another 107 day lockdown for 1.6 million people in the Auckland region.
eps is forecast at 31 cps in FY23 rising to 33 cps in FY24.
On a net price of $3.14 (3.24 - 10 cent divvy back shortly) that's a PE of only 10.1 in FY23 and only 9.5 in FY24.
One is paying a no growth PE but getting the growth in earnings for nothing and while you wait you're getting the best gross yield on the market of 10.8% (Average dividend forecast for FY23 and FY24 is 24.5 cps / 0.72 = 34 cps gross / 314 current share price)
I get it the others have more refined business models, (believe me mate I didn't come down in the last shower), and their pricing fully reflects that and the much lower yield reflects for example HLG's better growth prospects. You know I have a lot of respect for HLG but the current year PE of about 20 is at an all time high and their yield with the low level of imputation is at an all time low. I bought that stock when it was totally unloved (like WHS is now) on a dirt cheap PE and a gross yield of 15% @ $2.75. Now the yield is just on 5%.
I'm a value investor Percy. I stick to what I know works for the Beagle fund. I reiterate the forward yield is 10.8% and the average broker price target is $3.70 which on a dividend adjusted buy price of $3.14 gives a ~ 18 % upside on top of that outstanding yield.
Briscoes has been around for donkey's years so any comment they will affect WHS is baseless. If anything, people will be trading down in brands in the current environment. Costco, 1 store, wow, I am trembling in fear lol
Everyone was telling me HLG were done for back in 2016 with Zara and I forget all the other clothing retailers that were supposed to smash them into oblivion. Believe me, I've heard it all before many, many times.