Whilst that is excellent grwoth, last year their profit before tax margin was 7.2%. Multiply that by $550M and we get $28M NPAT. Divide by 192M shares on issue and get 15 cents EPS.
Broker reports have forcast 16 to 19 cents EPS on $550M revenue.
UXC has a dividend payout ratio of 67%, unlike companies like OKN, that payout close to 100%.
Due to the payout ratio, I would place UXC on a PE ratio of 14, giving UXC a 30 June 2008 target price of around $2.35 to $2.45.
Currently price is OK. When it was $2.80 and I said it was overvalued.
Good luck
V
UXC Price at posting:
0.0¢ Sentiment: Buy Disclosure: Held
