We have to consider both the valuation and the financial situation.
Based on today's share price, it looks cheap with a PE 26 of 3.9 x (taking their target of 100 m$ NPAT in FY 26).
Even if we just look at FY 24, it still looks cheap with a PE of only 7.6 x, while FY 24 is expected to be the bottom for their short term earnings.
The company also looks cheap based on its their equities (618 m NZD at 31/12/23*).
Risks at this stage :
- potential need for a capital increase to improve their financial situation**,
- stock could go back to its bottom of 1 NZD (in NZX) during covid.
They seem to have a regular problem of cash flow, as their cash flow from operation has been negative during the last 2 years and a half.
But this is only due to the fact that they have to book their purchase of rental assets in their cash flow from operation.
Excluding this item, they would have a significant cash flow from operation.
Given their tight financial situation, it is not a surprise to see the company revising down the growth of its fleet to a rental fleet below 9,000 at end of FY 25 (vs previous guidance of a rental fleet below 9,500 at end FY 25).
My main difficulty with their business model remains that they seem to largely depend on the resale of their ex-rental vehicles.
I have never been able to find a figure for their cash flow, excluding the proceed from sale of ex rentals.
* this figure may be inflated by different elements. Probably more cautious to consider equities excluding intangible assets (191 m NZD). In that case, market cap is close to equity value.
** for now, the company says that it does not need to raise capital, but it will work with its banks to modify its covenants.
- Forums
- ASX - By Stock
- THL
- Ann: thl reduces FY24 NPAT guidance
Ann: thl reduces FY24 NPAT guidance, page-3
Featured News
Add THL (ASX) to my watchlist
(20min delay)
|
|||||
Last
$1.91 |
Change
0.040(2.14%) |
Mkt cap ! $415.7M |
Open | High | Low | Value | Volume |
$1.84 | $1.91 | $1.84 | $24.39K | 12.92K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 541 | $1.89 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$1.96 | 34781 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 541 | 1.890 |
2 | 1125 | 1.840 |
1 | 2367 | 1.810 |
1 | 2036 | 1.800 |
1 | 492 | 1.725 |
Price($) | Vol. | No. |
---|---|---|
1.960 | 34781 | 1 |
1.965 | 2680 | 1 |
1.970 | 2750 | 1 |
1.985 | 633 | 2 |
2.000 | 1123 | 3 |
Last trade - 14.04pm 05/09/2024 (20 minute delay) ? |
Featured News
THL (ASX) Chart |