I would have preferred the capital return to be dated just after...

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JetJunkie

28 Posts.

15

06/02/22

12:02

Post #: 59387163
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Originally posted by Alejandro1: ↑

The company is in a much better position to focus on broadening its competitive advantage in Australia. The management is an improvement to what was there before. Revenue for the Australian division was down 18% in 2019 compared to what it was in 2011. Management were very much focused on delusions of grandeur abroad and neglecting their Australian operations.

The US revenue at its height added $2.3 Billion to revenue while Australian operations were around $3.5 Billion of revenue in one year. We can expect continuing revenue to be $3 Billion and up for continuing operations. The US acquisitions did not add much EBIT value compared to what was spent on acquiring them judging by the historic EPS figures. 2011 EPS was 25 cents and 2012, 28 cents compared to 2017 of 25 cents and 2018 of 36 cents and 2019 of 18 cents. Hardly an improvement!

I can see Seven Group adding more shares to their holdings through on market buy backs at these prices, win win for all.
It is interesting to note that goodwill of $2.2 Billion has been reduced to $72 Million as of the 2021 annual report from Us divestment.

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I would have preferred the capital return to be dated just after the half yearly report so we knew the forecasts. The impact of the downturn in construction in Australia concerns me. I guess we will see if we have $3B for continuing operations in just over a week.

But... about a third of my holding now cost me less than nothing to own, so I can't complain.

I'm a Hold until we see the next report.

DYOR

BLD Price at posting: $3.80 Sentiment: Hold Disclosure: Held
3 Upvote

0 Great analysis

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