"At $70-80m free cash/assets (after payables) you're paying roughly 10x for what seems to be trough earnings. "
That's the correct - but very much understated - take, I think.
If one excludes the P&L volatility from Investment Gains/Losses (which have been greatly reduced since the OZG/WIZ sale in 2020), EZL has never made less than $15m in Pre-Tax Profit over any 12-month period (that low happened in the 12-m to June 2023), as can be seen in the chart:
On average, EZL's PBT over any 12-month period has been $25m, and the peak is in excess of $35m.
Taxing those trough, average and peak PBT numbers at 30%, yields Raw P/E multiples of 13.7x (based on trough earnings), 8.2x based on mid-cycle average and 5.9x on a peak scenario:
Adjusting for the $65m net cash balance (cash-at-bank less net broker payables), gives valuations that are half the level of the raw multiples.
Feels very much like one of those rare situations of:
Heads: I win a lot.
Tails: I don't lose much at all.
.
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Last
82.0¢ |
Change
-0.005(0.61%) |
Mkt cap ! $135.1M |
Open | High | Low | Value | Volume |
81.5¢ | 82.0¢ | 81.5¢ | $48.23K | 58.85K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
3 | 11213 | 81.0¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
82.5¢ | 4 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
3 | 11213 | 0.810 |
4 | 28514 | 0.800 |
1 | 2000 | 0.785 |
2 | 2923 | 0.780 |
1 | 10000 | 0.775 |
Price($) | Vol. | No. |
---|---|---|
0.825 | 4 | 1 |
0.830 | 14197 | 3 |
0.850 | 18515 | 1 |
0.875 | 9205 | 1 |
0.880 | 20272 | 1 |
Last trade - 14.19pm 06/09/2024 (20 minute delay) ? |
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EZL (ASX) Chart |