Not much out there on RCR re analyst views and coverage! From a quick fundamentals view, we have:
FY17 P/E 15 but forward FY19 P/E 9 on the back of huge FY17 earnings growth (200%), then 50% FY18 and 20% FY19
Mickey mouse debt levels
Low dividend yield so should be able to fund growth via cash inflows
High intangibles and goodwill ($200m or 40% of total assets) risky but representative of a growth company
Sector/company primed for growth but risk re CW Government policy shifts given volatile politics atm.
Before it's a buy, I'd like to answer:
Can management handle this growth adequately?
Are the forecasts likely to be met or exceeded?
If so, RCR looks like a good MT opportunity - cheap based on FY19 projections - target SP of $5.40 on a P/E of 15...and a small 2% to 2.5% dividend going forward is the proverbial cherry on top!
Views or insights into this??
RCR Price at posting:
$3.22 Sentiment: None Disclosure: Not Held
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