EZL euroz hartleys group limited

This goes to show that the trading update the company provided a...

  1. 17,593 Posts.
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    This goes to show that the trading update the company provided a few days ago was a near meaningless update because it made no reference to what the investment gain or loss was.

    As it happened, the P&L was held back by a $4.7m mark-to-market losses on investments, ($2.7m in the DH23 and a further $2.0m in JH24).

    Which, if you strip those out, instead of FY24 Pre-Tax Profit of $9.3m (split as: $2m in DH23 and $7.2m in JH24), you get Underlying Pre-Tax Profit of $ 13.9m ($4.6m in DH23 and, importantly, $9.3m for JH24).

    So they exited the year at a half-yearly Pre-Tax run-rate of above $9.0m (or NPAT of $6.5m, => $13m annualized NPAT).

    Yes, I know that EZL's earnings are not granular, so the notion of "annualising based on a period-end earnings run rate" is a bit of a flawed one. Nevertheless, even if one takes it as a merely indicative, as opposed to prescriptive, indicator, then it very much sounds like a level of profitability which doesn't match a company with an Enterprise Value of only $55m.

    At this rate, on my calculations it is trading on ~3x EV/EBIT (and that is based on the interest income booked below the Operating line).

    Sure, given the volatility of EZL's earnings an EV/EBIT of, say 12x, is not justifiable.
    Nor even 10x. Or probably not even 8x.

    But I think at least 5x or 6x is eminently defensible.

    Which would equate to a share price of $1.20.

    .
 
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(20min delay)
Last
89.0¢
Change
-0.030(3.26%)
Mkt cap ! $146.6M
Open High Low Value Volume
92.0¢ 92.0¢ 89.0¢ $39.51K 43.83K

Buyers (Bids)

No. Vol. Price($)
1 25000 90.0¢
 

Sellers (Offers)

Price($) Vol. No.
92.5¢ 2707 1
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Last trade - 11.38am 02/04/2025 (20 minute delay) ?
EZL (ASX) Chart
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