Ann: Full year results presentation, page-27

MS- article on AZJ
Share price reaction over done?Atkins adjusted his Fair Value estimate for Aurizon down by around 4% to reflect management’s weaker forward guidance. Investors were harsher in their assessment and have sent the shares down by around 10% to a price of around $3.27 per share.As a result, Aurizon shares now trade at a 28% discount to Atkin’s $4.50 Fair Value estimate and command a 4-star Morningstar rating. Given that the shares looked undervalued even before the latest fall, Atkins thinks that management’s decision to announce a $150m share buyback makes sense.The balance sheet also looks fairly strong. Aurizon’s growth investments were lower in 2024 and this allowed the company’s debt to fall as a multiple of pre-tax earnings. A further tapering down in growth investments could give Aurizon room to pay out a higher percentage of its earnings as mostly franked dividends.
Onward and upward, now we have MS recommending us- god we are doomed