Pre Investor Day - Notes from Q&A session, page-51

hi

I have said the same about 18months ago, that their Debt/ equity ratio is high and hence not same as other bnpls, compare below:
The debt/ equity ratio for HUM is 319% and
Zip 181%
APT 101%
SZL 44%

This certainly needs to be managed well and perhaps another question for the 27th Investor day question.

But like BigJDK said, banks also have very large debts to fund loans like WBC has $154,144m debt. vs $2,200m

But my valuation is based on asset value, which is used when a company is going bust. HUMM not a going concern. its growing

A bank or diversified financial normally have a P/E ratio of 13-15% but HUMM's current SP makes a PE of 6% only. At PE of 13-15 its SP should be $2:30-$2.51. Hence undervalued. It's not even valued as a bank or a diversified financial. Atleast it has 1m+ bnpl customers that other banks are trying to implement.

Also, in terms of Debt, they have the best customer vetting system and they do full customer credit check, so the $2.2b is secure as was evident in the last qtr when they only had 2-3% bad debts while other bnpls (APT-Zip-SZL etc) had 25-45% bad debts. Also the provision 0f $30m for FY19-20 bad debts was not used. So should be safe money.

There are positives, just that Mr. Market Does not think so .......and Mr. Market is mostly right......and u could be right too....IMO DYOR


Perhaps i should break up every sector and value it again.....watch this space.