AGL has a strategic advantage in deploying capital and therefore should achieve superior returns (slide 25 of presentation) over the industry more generally because they own the customer! .... And the customers like them with Net Promoter Score at a record high.
Share price weakness today on low dividend and poor cashflow, but management flagging this will reverse as working capital unwinds with accelerating cashflow/earnings into 2024
Multiples and div yield in 2023/4 make AGL look unsustainably cheap.
I reckon instos keep accumulating as we are at/near the low ... management saying:
"FY23 guidance reflects at expected improved second half" ..
"Encouragingly, the outlook beyond FY23 remains positive. Wholesale electricity pricing remains elevated compared to prior periods, with AGL expected to benefit as historical contract positions reset in FY24 and FY25."
AGL Price at posting:
$7.20 Sentiment: Buy Disclosure: Held
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