No this does not take into account the cash in the bank which could be used for capital management which could increase EPS. E.g. share buy back, buy a new business that is earnings accretive.
I don't believe there is $ 700 - $ 800 million for distribution because if you look at their balance sheet at 30/6/2024 they have several hundred million in current liabilities which are payable within 30 days. Refer google on "quick ratios" for cash to be kept for paying current liabilities.
I recently looked at Commsec data which has Net Tangible Asset backing at about $1.50 per share. NTA backing is all assets ( including the cash) less all liabilities.
And this is why there has never been a takeover bid for A2m. Even if the offer was $2 a share the directors would not recommend it to a2 shareholders.
Also the company making the offer would eventually have to write off (expense) the 50 cents paid above $1.50 NTA per share.
Its going to be a hard road back. But management are doing a good job. They really need to get USA and MVM to breakeven, at the moment these areas are a significant drag on EPS.
GLTASH
A2M Price at posting:
$5.91 Sentiment: Hold Disclosure: Held
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