Predicting and/or understanding share price movements is an impossible task of course.
I guess it's reasonable to expect that share buy-backs may increase a share price given that the same profit will be spread across fewer shareholders. I suspect that the problem here is that future profits have become such an intrinsic part of the COH share price that the buy-backs hardly make a dent.
This Companys compounded average growth rate in their EPS across the last five years is about 3%, Their compounded average growth rate for Profit before Tax across the last five years is about 6%. Their anticipated net profit growth for the 2025 year according to the company is around 8%. But their trailing P/E ratio currently stands at about 50 times.
When you consider that CSL has an EPS compounded annual growth rate of about 5% and has a P/E ratio of about 35 times, it could be argued that the COH share price is too high to enable the buy-back to kick into the share price. I like this company but have always found it too expensive to buy.
COH Price at posting:
$278.07 Sentiment: None Disclosure: Not Held
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