We might mentally link them as humans but each transaction is independent. Buying back shares to reverse dilution is not worthwhile if the share buyback generates a worse return than alternative uses of the money. In that scenario we're better off allowing the shares on issue to expand and to focus on using the money to increase earnings so that EPS goes up despite the dilution.
My point is that MQG should be deploying capital wherever it gets the best return and if the 1H24 earnings is the "new normal" then, at EPS of ~$3.70 for a ~$160 share, MQG buying its own shares is getting a ~4.6%p.a. return, which is similar to or slightly worse than cash and well below MQG's historic RoE.
Our hope is obviously that 1H24 was a one-off low and earnings will rebound. Given the buyback buys future earnings not past earnings, that would change the return profile.
- Forums
- ASX - By Stock
- Ann: Macquarie Group 1H24 Presentation
We might mentally link them as humans but each transaction is...
-
- There are more pages in this discussion • 2 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add MQG (ASX) to my watchlist
(20min delay)
|
|||||
Last
$229.23 |
Change
0.500(0.22%) |
Mkt cap ! $87.51B |
Open | High | Low | Value | Volume |
$227.99 | $230.18 | $226.16 | $54.14M | 237.1K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 27 | $229.23 |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
$229.25 | 44 | 6 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
6 | 48 | 229.250 |
1 | 11 | 229.240 |
1 | 5 | 229.230 |
2 | 50 | 229.220 |
2 | 40 | 229.210 |
Price($) | Vol. | No. |
---|---|---|
229.310 | 95 | 14 |
229.320 | 11 | 3 |
229.330 | 27 | 4 |
229.340 | 62 | 6 |
229.350 | 13 | 2 |
Last trade - 15.56pm 08/10/2024 (20 minute delay) ? |
Featured News
MQG (ASX) Chart |