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5.56%

25.5¢ ashley services group limited

You've got a pretty interesting definition of modest. 4 years...

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hankreardon

1,158 Posts.

593

24/09/21

17:35

Post #: 56333789
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Originally posted by pCap: ↑

Just to add my two cents. ASH generated operating cashflow (pre working capital) of about $11m in 2021 which amply covers the dividend, however the working capital investment of ~$6m brought operating cashflow back to about $5m. Given their was a 40% increase in LH activity in June, the increase in working capital was to be expected. This is a nice problem to have and we'll continue to see working capital investment until the growth starts to slow down. The working capital investment should also mean we will see strong operating cashflows if this business starts to slow and the working capital investment unwinds. Trade receivables performance/collections also looks healthy, so their customers appear to be paying on time and in good financial shape.

Having been in ASH for many years, this seems like a stock where you will be handsomely rewarded for long term holding through big dividends and modest price gains, but its a mugs game trying to guess when its share price will ever reach its intrinsic value (which in my view is currently 80c+ with upside from there).

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You've got a pretty interesting definition of modest. 4 years ago (since the turnaround in share price), ASH was 14c. That is a 4yr CAGR of 38% capital growth alone PLUS dividends....

ASH Price at posting: 50.0¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 25.5¢		Change -0.015(5.56%)		Mkt cap ! $36.71M

Open	High	Low	Value	Volume
25.0¢	26.5¢	25.0¢	$24.04K	94.16K

Buyers (Bids)

No.	Vol.	Price($)
2	102199	25.0¢

Sellers (Offers)

Price($)	Vol.	No.
26.0¢	34999	1

View Market Depth

No.	Vol.	Price($)
2	102199	0.250
3	77384	0.245
3	86208	0.240
1	16183	0.235
3	76077	0.230

Price($)	Vol.	No.
0.260	34999	1
0.270	41845	2
0.285	3846	1
0.300	34101	2
0.330	7150	1

Last trade - 16.10pm 11/07/2024 (20 minute delay)

ASH (ASX) Chart