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2.33%

$3.36 nrw holdings limited

Ann: NRW Full Year Results Media Release, page-10

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hicks58

608 Posts.

24

19/08/20

20:29

Post #: 46669103
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Originally posted by Pioupiou: ↑

In normal times, NWH should have a PER of say 15, which is just average, but good for an infrastructure and mining services company, which NWH is. With a normalised EPS of 21c for FY20, the SP should be 21 x 15 = $3.15, or $3.00 as a round number. However, that is a trailing EPS, it will not take long before folk switch to the forward-looking EPS, because NWH's future that counts, not its past.

Select any normalised forward-looking EPS and any PER that you think is apt, and you would end up with a 12-month forecast. At the high end, 27c EPS gives a target share price of $0.27 x 15 = $4.05.

If NWH simply holds its NPAT/Revenue margin, then, using the mid-point of the $2.2b – $2.3b guidance, the NPAT could be 21c x 2.25/2 =,23.62 cents, which times 15 is $3.54. There is no reason why NWH cannot improve the NPAT margin, and I expect to see as much.

The Mr Micawber in me suggests we could see my original $4.00 by December, and the Grinch in me suggests $3.50. By December investors would have switched to a forward-looking frame of mind, and what they learn from Announcements in the next four months would make a material impression on investor sentiment.

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Thanku Pioupiou,very clear and concise --this all makes sense to me now

NWH Price at posting: $2.05 Sentiment: Buy Disclosure: Held
3 Upvote

0 Great analysis

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(20min delay)
Last $3.36		Change -0.080(2.33%)		Mkt cap ! $1.529B

Open	High	Low	Value	Volume
$3.39	$3.41	$3.35	$1.425M	422.5K

Buyers (Bids)

No.	Vol.	Price($)
54	23547	$3.35

Sellers (Offers)

Price($)	Vol.	No.
$3.36	11874	35

View Market Depth

No.	Vol.	Price($)
54	23262	3.350
32	81822	3.340
13	18671	3.330
11	37303	3.320
8	80421	3.310

Price($)	Vol.	No.
3.360	11874	35
3.370	21595	20
3.380	38359	30
3.390	33364	13
3.400	67549	25

Last trade - 14.41pm 06/09/2024 (20 minute delay)

NWH (ASX) Chart