"I would imagine the div will be under pressure while they finish the reorganisation. I will wait before I re-enter. JMT"
You don't think the share price already reflects a re-basing of the dividend, along with the earnings?
Even if EBITDA falls by, say, a further 15% in FY2015, to ~13m, it would leave the stock valued at under 4x EV/EBITDA. (EV of $67m Mkt Cap less $15m Net Cash, after the capital return, so EV of $52m).
Companies involved in the distribution of consumer products are never great businesses, but this one isn't too bad, and its management has a track records of prioritising shareholder returns (as opposed to using blowing shareholder capital on ill-considered empire building strategies).
In that context, EV/EBITDA of 4x (corresponding to EV/EBIT of just 5.7x... the company doesn't make significant use of leases and is capital-light, so the depreciation expense is modest) doesn't sound like anything close to being fairly valued, let alone overvalued.
.
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Last
72.5¢ |
Change
0.005(0.69%) |
Mkt cap ! $69.90M |
Open | High | Low | Value | Volume |
73.0¢ | 73.0¢ | 72.0¢ | $1.752K | 2.416K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 1 | 72.5¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
73.5¢ | 29992 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 1 | 0.725 |
1 | 5446 | 0.720 |
2 | 12222 | 0.710 |
3 | 29885 | 0.705 |
3 | 2160 | 0.700 |
Price($) | Vol. | No. |
---|---|---|
0.735 | 29992 | 1 |
0.750 | 168942 | 3 |
0.755 | 18000 | 1 |
0.760 | 15000 | 1 |
0.770 | 32000 | 2 |
Last trade - 14.27pm 01/10/2024 (20 minute delay) ? |
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Adrian Costello, Executive Director
Adrian Costello
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