https://www.porscheipo.com/?gclid=EA...SAAEgIZuPD_BwE
I wish you luck ... and hey, I highly respect the current management team. Good people. However - I still think that it is a cyclical business. Nothing wrong with that (life and nature does go in cycles) ... just not so good to buy them on the way down.
And absolutely - my past timing with some cyclicals (TRA is one of them, SKL another) was terrible. I was riding TRA at some stage from something like $3 and promising more to something like $1.50. Ouch. So, you well might be right - it could be all up from here. On the other hand - I am not always wrong either :) ;
I noticed that I seem to understand some companies and their cycles better than others and am now investing more often in companies which I can synchronize with ...
https://www.nzx.com/announcements/394538
Nearly missed this letter released early this morning..
Great read.
TRA must deserve the award for best communicator with shareholders. Good stuff. I reckon we will see low double digit growth P.A next 3 years and i am mighty fine with that give its trading on a 8.5 multiple
Dear Shareholder
The Turners Limited Annual Report for the year ended 31 March 2022 is now available. We invite you to read this on our website at https://www.turnersautogroup.co.nz/I...r+Reports.html The FY22 year delivered another record result for our business, with Turners not only demonstrating earnings resilience but strong growth credentials as well. We are confident we have found the right formula and that our actions will deliver continuing growth over the next three years.
Our growing returns are driving much improved outcomes for our shareholders, and we were pleased to deliver record dividends of 23.0 cents per share in FY22.
With another record year of results, a stronger and de-risked business, a clear strategy and a near-term economic outlook that is looking more uncertain, our business has never been in better shape. We are ready for whatever comes next.
Our Three Year Plan
Our three-year plan centres on organic growth and is focused on four key areas, comprising both physical and digital investments.
1. Retail Optimisation and Expansion across people, property and processes.
2. Vehicle purchasing decision-making using data and tools to help identify new sourcing opportunities, and leveraging our brand strength to generate local sourcing leads.
3. Margin management and Premium lending within Finance. 4. Continued investment in digital and improving our omni-channel customer experience which allows customers to engage with us however, whenever and wherever they want.
Looking beyond FY23, we remain very confident about further growth over the medium to longer term. We have updated our three-year rolling target to grow to more than $50m of underlying profit before tax by FY25. On behalf of the Board and management, we would like to thank our shareholders for your continued support.
TRA is NOT a car company, if it were you should be really worried about the Debt/Equity of over 200%. TRA is an Eco-system of three main parts;
- Car sales,
- Bank,
- Insurer
They have large borrowings to cover their banking operation, lending to buyers of cars, and profits on all three sectors are consistently close, although not equal - car sales this year were 37% of operating profit.
VW and Merc are vehicle manufacturing, with an exposure to new car sales, - also very different from second hand car sales. They have minimal margins due to competitive failings - too many countries subsidising manufacture to use cheap labour, again not TRA.
An ecosystem is where the sale of one product is part of an ecosystem where other products can leverage the first. I believe Turners uses all three main products to leverage the other two.
And
4. Debt collector
.....
(n)
property owner ... according to Mr P.
just more than a one stop shop ..
Thanks - I am impressed. You clearly must have read a couple of pages of this thread and are now able to repeat what you read. Good start.
Yes, TRA makes a material part of its income through finance and insurance - and (a significantly smaller part) through debt collection.
So do most car manufacturers. If you have a look into Mercedes Benz or Volkswagens books, you might discover that they make as well more than one third of their income just through financing the sales of their cars. I assume the same is true for most other car manufacturers.
A bit telling is your comment on the finances of Mercedes or Volkswagen ... did you ever look into their books?
If you did, you would know, that their earnings are huge (P/E around 5 to 6) and their margins further improved significantly with the arrival of COVID and its related manufacturing issues. Sell something which is in demand and its a sellers market.
So - fundamentals look good for them (as well as for TRA), however market is very cautious (indicated by very low P/E ratings). Maybe market knows something we don't want to see ... or maybe they are wrong?
Ah yes - and did it ever occur to you that the TRA ecosystem you are describing is very dependent on only one of its components (sell used cars) ... just allow carsales to drop and the rest will follow.
Whatever it is - it might be time to watch out ... but each to their own.
I am sure that the Turners vehicle will traverse a variety of road conditions over the next few years but I have confidence in the driver and crew to avoid the big potholes & large wild animals and keep the machine running.