I'd agree that on the back of the envelope this looks pretty compelling.
$198m UNPAT plus synergies against a MC of $1.1b gives a PE at 5-6 for what is a highly cash generative and robust business.
Granted IOOF's FUM will drop significantly along with their NPAT but the PE of 5-6 doesn't include any of the $40m synergies expected from the ANZ integration.
I agree the loss of DC is a blow - he is clearly a first rate operator but I have been watching RM and find him impressive. I like that he has been with IOOF since 2003 and that he's put $200k of his own coin into buying shares recently. (Equal to about 20% of his gross pay in 2018 and 2019).
I'm still trying to get my head around their debt profile (which has been complicated by the redeemable note to ANZ) but I haven't found any red flags so far.
Am I missing something here?
IFL Price at posting:
$3.42 Sentiment: Buy Disclosure: Held
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