Strong results, no two ways about it. Even at a forecast-EBITDA multiple of 5, the shares are worth north of $1 ...
It would have been a good move (market sentiment-wise) to have either split the planned FY22 dividend between an interim and final dividend (even paying a 1c interim dividend would have achieved this, and still kept SWM below its Net Debt / EBITDA leverage target), or if the intention is to do a share buyback instead of paying dividends, announce that the buyback would commence in H2-FY22 (there's enough wriggle room regarding when it actually starts and at what rate the shares are bought back).
Board is now asking for another 6-months before letting shareholders know what might be dribbled out to them, and as the SP action is showing, patience is wearing thin.
SWM Price at posting:
71.5¢ Sentiment: Buy Disclosure: Held
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