Yes @Ahf1995, I agree ACF is undervalued. Based on the current price and upgrade, it is on a FY23 P/E of around 7. This is ridiculous for a > $200M market cap company that has grown its EPS at a compound growth rate of over 40% p.a. for the last 3 years, with no sign of slowing down. EPS has tripled in 3 years from around 3.7c in FY20 (the year covid hit) to around 11c in FY23. Dividends have more than doubled in the same time.
This is also a much higher quality company now than 3 years ago, with ROIC now around the 25% mark (was 11% then), with the added bonus of much greater size (now > $200M compared with $68M 3 years ago), much greater geographical diversity and many more areas of expertise/services. Given all of this, I consider a P/E of 14 would still be cheap. That would represent a doubling in share price just due to P/E expansion.
Yes @Ahf1995, I agree ACF is undervalued. Based on the current...
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Last
$1.10 |
Change
0.000(0.00%) |
Mkt cap ! $331.5M | |||
| Open | High | Low | Value | Volume |
| $1.10 | $1.11 | $1.09 | $457.0K | 416.5K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 8999 | $1.10 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.11 | 7700 | 1 |
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| Last trade - 16.10pm 02/10/2024 (20 minute delay) ? |
| ACF (ASX) Chart |