A Great Stock at Great Value

Summary
Eildon Capital Limited (EDC) is an investor that invests in the real estate sector in Australia across a range of asset categories. The investment objectives of the Company are to build a portfolio of actively managed property investments; hold a portfolio of property investments that deliver a combination of an income stream and capital appreciation by reposition and improvement of the investment prior to realization; provide Shareholders with reliable and increasing returns, and deliver shareholders a return, which includes dividend income franked to the maximum extent possible and the benefits of capital appreciation arising from the growth in net assets. It invests in various sectors, including manufacturing, retail, logistics and real estate. It holds a mezzanine finance loan on a property development in Melbourne; over four senior finance loans on property developments, and an equity investment in a property in Brisbane. Eildon Funds Management Limited is the manager of the Company.

Portfolio
The portfolio at the end of December consisted of 10 investments including 7 debt positions, accounting for 84% of the portfolio by value. These investments provide a margin of safety in the event that the property market experiences a negative shock. The balance 3 investments represent equity positions that, while asset backed, also provide potential exposure to meaningful capital growth via asset repositioning, planning outcomes or market re-rating.

The company has been growing EPS at a very solid rate and its Trailing twelve month EPS growth rate is 34.6% and since its initial float (mid 2017) EDC has paid out 0.255 DPS.
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EDC Revenue Structure

Future growth
The real estate lending market totals approximately $271 billion. Previously major Australian Banks have funded approximately 80% of this segment. With changes to security requirements imposed by APRA, Australian Banks have reduced this exposure to approximately 65%. This has seen a growing number of non-banks become active in this segment.

Regarding COVID-19, the board issued the following statement

"The real estate lending market totals approximately $271 billion. Previously major Australian Banks have funded approximately 80% of this segment. With changes to security requirements imposed by APRA, Australian Banks have reduced this exposure to approximately 65%. This has seen a growing number of non-banks become active in this segment"

Currently EDC is trading with a Net Asset Backing of $1.095 (post tax - 22/05/2020) and the SP is $0.97. That's nearly 10% under the current price.

I applied a discounted cash flow to the current price using the values as below and its intrinsic value is $2.55 with a growth rate of 14% which is not unreasonable. This represent expected growth of around 262% in the next 5 years and the stock is within margin of safety price. TTM EPS of 0.11 was used as per stockopedia.com

Discounted Cash Flow

-- DYOR and GLTAH. This is not investment advice
EDIT:
PS: 7.98% dividend
EDIT: To further add to my post, regarding the companies current financial integrity.
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Piotroski's F-Score (Health Trend)
Altman's Z2-Score (Bankruptcy Risk Meter)