If you go to page 11 of their 1H23 results presentation they forecast $ 2 billion in sales by 2026 at a compound annual growth rate of 8.5%.
Thus net profit (earnings per share) relative to sales will only increase 1 - 2 % per year.
So if we accept EPS .25 cents (which is far too generous) for year ending 30 June 23 and increase EPS by 5% ( which is far too generous) for year ending 30 June 24 ( i.e. 1.2 cents) then EPS for year ending 30 June 24 will be .262 cents.
If I pay $7 for a share on 1 July 2023 my return for the next year will be .262 cents divided by $7 = 3.7%, which is low.
This is why most brokers have very low valuations on a2.
Also the paying of a dividend is irrelevant to share price. Its does not matter if EPS is retained in the company or paid as a dividend. Some people will argue paying a dividend is actually a negative because it indicates the company has limited investment / growth opportunities.
I think we all need to see a2m for what it is. Great company, great product, great management but a long hard road ahead to win then hold market share. And hopefully pull back on marketing expenditure to improve EPS.
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- Ann: 1H23 Results Presentation
Ann: 1H23 Results Presentation, page-101
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Last
$6.65 |
Change
-0.050(0.75%) |
Mkt cap ! $4.829B |
Open | High | Low | Value | Volume |
$6.70 | $6.71 | $6.65 | $701.8K | 105.1K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
15 | 6183 | $6.64 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$6.66 | 14389 | 13 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
10 | 7757 | 6.650 |
5 | 6348 | 6.640 |
6 | 14777 | 6.630 |
6 | 35691 | 6.620 |
5 | 78110 | 6.610 |
Price($) | Vol. | No. |
---|---|---|
6.660 | 1278 | 4 |
6.670 | 8771 | 7 |
6.680 | 16938 | 12 |
6.690 | 6039 | 6 |
6.700 | 38039 | 10 |
Last trade - 11.01am 05/07/2024 (20 minute delay) ? |
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