buy or sell?
The only caveat is the valuation on around 32x trailing FX-adjusted earnings of NZ$0.39 cents per share is reasonably high.
If we aggressively assume the company can grow earnings at a 20% compound growth rate over the next 7 years as its operating leverage kicks in and use a conservative 0% terminal growth rate on a discount rate of 11% the stock is worth around A$9.89.
The U.S. market is also something of an unknown for now, but boasts potentially big profit growth opportunity over 3-5 years.
Given the robust cash balance of NZ$464.8 million provides room for dividends or buy backs down the line the stock is likely to receive more support in my opinion.
A hole sounds good to me
High Risk Warning, page-11
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Last
$5.65 |
Change
-0.060(1.05%) |
Mkt cap ! $4.084B | |||
| Open | High | Low | Value | Volume |
| $5.69 | $5.72 | $5.62 | $8.206M | 1.451M |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 59 | $5.65 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $5.67 | 3039 | 1 |
View Market Depth
| Last trade - 16.10pm 29/08/2024 (20 minute delay) ? |
| A2M (ASX) Chart |