"I would imagine the div will be under pressure while they finish the reorganisation. I will wait before I re-enter. JMT"
You don't think the share price already reflects a re-basing of the dividend, along with the earnings?
Even if EBITDA falls by, say, a further 15% in FY2015, to ~13m, it would leave the stock valued at under 4x EV/EBITDA. (EV of $67m Mkt Cap less $15m Net Cash, after the capital return, so EV of $52m).
Companies involved in the distribution of consumer products are never great businesses, but this one isn't too bad, and its management has a track records of prioritising shareholder returns (as opposed to using blowing shareholder capital on ill-considered empire building strategies).
In that context, EV/EBITDA of 4x (corresponding to EV/EBIT of just 5.7x... the company doesn't make significant use of leases and is capital-light, so the depreciation expense is modest) doesn't sound like anything close to being fairly valued, let alone overvalued.
.
- Forums
- ASX - By Stock
- SHM
- Ann: Trading and Strategy Update
Ann: Trading and Strategy Update, page-5
Featured News
Add SHM (ASX) to my watchlist
(20min delay)
|
|||||
Last
68.5¢ |
Change
0.000(0.00%) |
Mkt cap ! $66.04M |
Open | High | Low | Value | Volume |
68.0¢ | 69.0¢ | 68.0¢ | $24.59K | 36.01K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
3 | 32648 | 68.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
69.0¢ | 23987 | 2 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
3 | 32648 | 0.680 |
1 | 3000 | 0.675 |
3 | 18757 | 0.665 |
2 | 36600 | 0.660 |
1 | 1525 | 0.655 |
Price($) | Vol. | No. |
---|---|---|
0.690 | 23987 | 2 |
0.695 | 5000 | 1 |
0.705 | 7488 | 1 |
0.710 | 8690 | 1 |
0.735 | 8500 | 1 |
Last trade - 16.10pm 19/07/2024 (20 minute delay) ? |
Featured News
SHM (ASX) Chart |