Some thoughts on Integral .
BENCHMARKS USED
Used Sonic, Primary Health Care and Capital Health. Capital Health similar in size to Integral and remaining two significantly bigger than Integral.
PROFITABILITY
EBIT to Sales margin for Integral at 16 percent versus others in range 10 to 13 percent.
Minor concern. How does Integral think they will get better margins. This means should be getting Integral at a cheaper price to cope with this potential downside risk in margins for Integral.
ASSET MANAGEMENT
Integral asset management very good at 45% versus others in range of 25 to 35%. Again, somewhat sceptical and need to purchase Integral at a cheaper price for this potential risk.
PRICING
If priced similar to the industry then Integral worth around $2.70. However, Integral much smaller and the possible downside risks noted above with Integrals 2016 forecasts.
CONCLUSION
I think there is some money to be made here but only at an IPO price of around $2 to $2.10.
