"rock solid base business with continued COVID windfall, I can't think of any better place to park excess cash."
"rock solid base business" - I agree with you there (with the one caveat to bear in mind who ultimately funds SHL's Revenues, viz, various governments)
"...continued Covid windfall" - In that regard, I don't share your enthusiasm; personally, I place a P/E of less than 1.0x on "Covid earnings"
"... I can't think of a better place to park excess cash" - I wouldn't say its the best place, but an OK place.
The investment calculus is not complicated: its a business that - with great reliability and high level of predictability - generates ~$1.1bn pa of Free Cash Flow, which equates to a ~7% FCF yield.
Not a dripping roast, sure, but attractive on a risk-adjusted return basis, considering the low level of operating and financial risk.
Accordingly, I started buying the stock this morning.
.
Ann: Trading Update - Results for 4 months to October 2022, page-6
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Last
$27.24 |
Change
0.560(2.10%) |
Mkt cap ! $13.08B | |||
| Open | High | Low | Value | Volume |
| $26.96 | $27.25 | $26.90 | $26.46M | 974.4K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 845 | $27.10 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $27.26 | 3124 | 2 |
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| Last trade - 16.10pm 26/07/2024 (20 minute delay) ? |
| SHL (ASX) Chart |