Cashflow generation very strong. 7c dividend declared plus 1H takes full year dividends to 14c. At current prices that's an 8.5% div yield (fully franked). You don't even need price appreciation for this to be worth owning for the annual dividend.
My only question now is valuation at these price levels.
Market cap - $235m
Net debt - $77m
Enterprise value - $312m
EBITDA (preAASB) - $74m - implies 4.2x EV/EBITDA which is cheap
but
assuming jobkeeper of $15m (p3 of investor presentation) then underlying EBITDA - $59m implies 5.3x EV/EBITDA
with $10m of capex forecast for next year the your proxy for cash is EBITDA - capex = $49m implies 6.4x EV/Cashflow
These multiples aren't high, but this is a business in a structurally challenged industry which is likely to experience a decline in earnings over time. I see this being the cap on share price appreciation going forward.
I got in a while ago and so am very happy with the share price increase over the last 12 months and the div yield, but may look to offload as it gets close to the $2 mark
Cashflow generation very strong. 7c dividend declared plus 1H...
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Last
$1.88 |
Change
-0.035(1.83%) |
Mkt cap ! $289.4M | |||
| Open | High | Low | Value | Volume |
| $1.92 | $1.92 | $1.88 | $338.5K | 178.6K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 2650 | $1.88 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.90 | 2 | 1 |
View Market Depth
| Last trade - 16.10pm 12/06/2024 (20 minute delay) ? |
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Last
$1.89 |
Change
-0.035 ( 1.05 %) |
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| Open | High | Low | Volume | ||
| $1.90 | $1.91 | $1.88 | 17614 | ||
| Last updated 15.59pm 12/06/2024 ? | |||||
| IGL (ASX) Chart |