As a very new shareholder in ACF, I am very impressed with this market update.
I took the time to re-check some of the financial measures I use for my investments, but I find that they seem almost too good to be true given the strong outlook for the industry ACF is operating in. Am I missing something? My calculations give: NPAT around $8M; P/E around 6.2 for FY20; ROE around 14.5%; Dividend gross yield (including franking credits) around 9.3% with only a 40% payout ratio. Return on capital well above the cost of capital, and plenty of capital being generated to reinvest in the business.
Can one of the longer standing investors please check my calculations and report back? It would be most appreciated.
ACF Price at posting:
23.0¢ Sentiment: Buy Disclosure: Held
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