I think the dividend is the missing link to achieve a $1 share price.
Per the most recent updates, they have all of the attributes necessary to sustain a $1 share price / $1.58bn market cap:
EBITDA of circa $320m+ for FY22
Very comfortable levels of net debt (circa $200m or less than 0.65x EBITDA)
Some growth in the business lines
EPS of circa 10.5 to 11.0 cents per share
Net cash from operations of circa 13 cents per share - so good capacity to pay an attractive dividend rate.
I agree with Lev20 that we will see a dividend announcement late this quarter - anything around 4 to 5 CPS will get this up towards $1 and they would then be firmly in the frame for the ASX300 index at next rebalance. Both of these opens the door to increased demand from institutions which either track the index and / or also only will own dividend paying stocks.
GLTA & DYOR.
SWM Price at posting:
69.5¢ Sentiment: Hold Disclosure: Held
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