Thanks for the link beagle
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... I'm excited by the position of SUM. A rising tide lifts all boats. Australia is one massive opportunity with much higher retirement expectations by retiries from what I have encountered. Over in Australia generally they earnt more, spend more and want all the trimmings. Can't wait for this development
Time to double down on a winning hand perhaps ? Still very very cheap on an underlying earnings forward PE of just 15.5 with their extraordinary track record of 47% average annual compounding earnings growth.
Food for thought. Can anyone name me a single other company on the NZX that has enjoyed six years of average earnings growth at 47% per annum ? (that's regardlesas of PE, doesn't have to be below the average market PE...any PE is okay, just want to know if there's another company I have overlooked ?)
(P.S. That's EPS earnings growth not earnings growth with huge numbers of extra shares issued)
Okay the build rate this year is the same as last year but what about thinking past that ? Where 's the build rate combined on both sides of the Tasman in 2021 ?
800 units per annum ?
Hey Beagle, I'm not sure of many others that have had that growth rate besides A2, SML - there may be others, I don't follow all on the NZX. The challenge is always knowing when a company may hit peak growth. I think SUM may be there... there comes a time when the size of a company makes the task of growing at the rate of 40% YOY harder and harder to achieve.
The good news is that the forward PE is just 15.5 ( I will rely on your maths ). So even if they grow at just 10% it would appear to me like its currently a bargain.
For a 20 year investment, keeping out a mindful watch for any disasters, it should be a great long termer. Maybe in 20 years, my dividends may look a bit better too.
Comments on this article are worth a read. The comment about SUM buying up nearby places and reselling them with a gag clause is interesting if true. Quite clever.
https://www.stuff.co.nz/business/103...rement-village
https://www.nzherald.co.nz/business/...ectid=12043406
Year on year nationwide average house price growth still ticking along nicely at 7.6% per annum.
Only 7 of SUM's 30 sites are within the greater Auckland area.
And the price keeps going up 😊