This alert from SWS:
New minor risk - Shareholder dilution 1 The company's shareholders have been diluted in the past year.
- Increase in shares outstanding: 11%
This is considered a minor risk. Shareholder dilution occurs when there is an increase in the number of shares on issue that is not proportionally distributed between all shareholders. Often due to the company raising equity capital or some options being converted into stock. All else being equal, if there are more shares outstanding then each existing share will be entitled to a lower proportion of the company's total earnings, thus reducing earnings per share (EPS). While dilution might not always result in lower EPS (like if the company is using the capital to fund an EPS accretive acquisition) in a lot cases it does, along with lower dividends per share and less voting power at shareholder meetings.
Currently, the following risks have been identified for the company:
Minor Risks
- Dividend is not well covered by cash flows (109% cash payout ratio).
- Profit margins are more than 30% lower than last year (62% net profit margin).
- Shareholders have been diluted in the past year (11% increase in shares outstanding).
Does anyone have a view on this CR?
If holders don’t participate they get diluted.
I will wait for the dust to settle.
Add to My Watchlist
What is My Watchlist?
 (20min delay)
|
|||||
|
Last
$3.60 |
Change
-0.010(0.28%) |
Mkt cap ! $1.440B | |||
| Open | High | Low | Value | Volume |
| $3.59 | $3.61 | $3.55 | $2.962M | 824.2K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 271 | $3.58 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $3.62 | 3467 | 1 |
View Market Depth
| Last trade - 16.10pm 29/07/2025 (20 minute delay) ? |
| ARF (ASX) Chart |