I have only guesswork for the question "why did it fall so much?" ... and my guesses are questionable.
1) I did not like the loss in valuation of their cash flow hedges. A loss of $28,298 is way too high; it reduced the profit for the year from $77,877m to $49,579 (page 49 of the AR). At a minimum, an explanatory note should have been given. This is poor treatment of the shareholder, and therefore, I did not invest. A proper explanation, and I (or other investors) might change their mind. Does this mean, that this business can easily wipe out $28 million? Really?
2) FPR pays no dividend! So, all you can hope for is that Mr market will realise that retained earning strengthen the company and make it more valuable (or that FPR manages your money better than you do
) But wiley Mr market is a little tardy or dim about them. This could be a reflection about the growth prospects of the company or the sector as a whole.
Below is a comparison with 2 other companies in the field:
3) FPR,in a sense, rewards the investor already with their continuing buy back program, looking at more than 32% so far; i.e. more earnings per share if business is stable longer term. But, at the same time: how will the company grow, if it needs less capital? What does this say to the investor? The BOD says:
"The Group plans to continue its focus on EPS growth through disciplined capital
management, including on-market share buy-backs and investment in strategic
opportunities such as Accelerate, that are expected to deliver strong returns and
sustainable EPS benefits for shareholders."
More detail here would be good.
4) An announcement of returning to dividend payments would definitively help the share price. Just look at A2M's performance after their announcement.
5) What is the earnings guidance, say EPS for BY 2025? Just a guidance range, please.
ATM, I retain my observer status.
(20min delay)