Its already been downgraded by instos and hence the move down.
Expectation on average now
Sales
2020- $274m
2021 - $278m
EBITDA
2020 -$57.8M
2021- $56.8M
NPAT
2020 - $40.1M
2021 - $38.7M
EPS
2020 17c
2021 16c
CAPEX
2020 - $12.5M
2021 - $22.4M
Capex has jumped significantly - two things we are probably looking out for.
- What is the second half of 2021 looking like?
- Will CAPEX be as high in 2022 as it will be in 2021? If not then will see a jump in NPAT in FY22 in the ~$55m range with EPS ~18c
- Will dividends be maintained at 11c?
FCF has been going lower y-o-y since 2018 with CAPEX rising y-o-y. Are we going to see Cash flow improve as CAPEX takes a back seat and allow synergies kick in to be accretive leading into FY22.
Basically FY21 will be done and dusted after AGM and look forward to FY22.
Currently trading at 11.3x ev/ebitda on above numbers makes this quite undervalued. Market just needs some certainty.
BVS Price at posting:
$2.97 Sentiment: Hold Disclosure: Held
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