Ann: Macmahon to Acquire Decmil to Expand Civil Business, page-8

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alonso

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17/04/24

10:22

Post #: 73382184
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Originally posted by birdman29: ↑

Just got this in an email ...Wed, 17 Apr at 9:34 am

Wednesday, 17 April 2024
MAH - MACMAHON HOLDINGS LIMITED
Macquarie rates MAH as Outperform (1) - Macmahon has announced it will acquire Decmil for an enterprise value of $127m, with ordinary shareholders set to receive 30 cents per stock.
The company intends to continue to operate Decmil as a wholly owned subsidiary and maintain branding, with the acquisition to boost the civil and engineering components of the business.
As per Macquarie, the acquisition will boost revenue by 20% and earnings by 10% from FY25, and adds $455m to the company's order book.
The Outperform rating is retained and the target price increases to 27 cents from 25 cents.
Target price is $0.27 Current Price is $0.23 Difference: $0.035 If MAH meets the Macquarie target it will return approximately 15% (excluding dividends, fees and charges). The company's fiscal year ends in June.
Forecast for FY24:
Macquarie forecasts a full year FY24 dividend of 1.00 cents and EPS of 3.80 cents . At the last closing share price the estimated dividend yield is 4.26%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.18.
Forecast for FY25:
Macquarie forecasts a full year FY25 dividend of 1.10 cents and EPS of 4.20 cents . At the last closing share price the estimated dividend yield is 4.68%. At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 5.60.
Market Sentiment: 1.0All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

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We'd have to assume the target price is conservative, it's certainly not ambitious.

MAH Price at posting: 24.5¢ Sentiment: Hold Disclosure: Held
3 Upvote

0 Great analysis

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