I figure a 15% rise in NPBT to $56m will give $46M or so NPAT which gives EPS of $0.47 for FY17. This leaves them on a forecast P/E of 16.6 which is very modest in this market.
Forecast div same old same old $0.22/share. The same as the last 2 years despite the strong rise in earnings during that time. The payout ratio has fallen from 74% in 2015 to forecast 47% this financial year. And cash at bank has gone from $92M last year to $114m now. Something is going to crack....... s special div?
I am prepared to wait. SRV is a very solid stock when the economy ticks along.
And not one extra share issued since 2011. Beautiful.
Cheers
Gosouth
SRV Price at posting:
$7.80 Sentiment: None Disclosure: Held
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