HUM

2.27%

45.0¢ humm group limited

So, in simple english, HUMM IS SEROIUSLY UNDERVALUED!!!

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Shashlik

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117

08/01/22

16:40

Post #: 58725959
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Originally posted by sharetrader: ↑

The more I look at the numbers the more I can't understand the situation.

They talk about commercial leasing profit which is $22.3mil so the HCF cash profit is $68.4mil minus $22.3mil being $46.1mil being bought for $335mil.
- but taking the tax paid of $21.8mil split to HCF is another $14.69mil of cash income from the business so $46.1mil plus $14.69mil or $60.79mil or around 5.51x multiple.
- then synergies of $50mil to $70mil if LFS and HUM combine, which should be shared between acquirier and target. This should add another $137mil to $192mil of consideration at the same multiple at 50%
- the 5.51x multiple of cash profit before tax can't be justified as being inclusive of the proposed synergies.

At least $335mil in cash and $137mil to $192mil of scrip should at least be part of the deal.

Not saying 5.51x as a number is right but the lack of numbers in the annoucements to justify is in stark contrast to the investor strategy day when we were talking multiples of revenue forget multiples of cash profit before tax.

LFS have sought Symble, they had $54mil in loans and if i read it correctly their profit was a loss of $1mil for $200mil purchase as a business that has only been around for 25months. If those multiples are applied to HUM well we be looking at dollars, offcourse I note there are other reasons for the purchase of the platform... but it cant be that justified the large variance for a loss making business with $54mil in loans at $200mil consideration and buying HUMM HCF a profit long tenure business as a low multiple.

dyor

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So, in simple english, HUMM IS SEROIUSLY UNDERVALUED!!!

HUM Price at posting: 91.0¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 45.0¢		Change 0.010(2.27%)		Mkt cap ! $221.1M

Open	High	Low	Value	Volume
44.0¢	45.0¢	43.5¢	$35.28K	79.73K

Buyers (Bids)

No.	Vol.	Price($)
1	44479	44.5¢

Sellers (Offers)

Price($)	Vol.	No.
45.0¢	36618	2

View Market Depth

No.	Vol.	Price($)
1	44479	0.445
1	45000	0.440
1	47619	0.435
2	24854	0.425
2	4633	0.420

Price($)	Vol.	No.
0.450	36618	2
0.455	37401	3
0.460	29364	3
0.465	10000	1
0.470	12000	2

Last trade - 16.10pm 12/07/2024 (20 minute delay)

HUM (ASX) Chart

So, in simple english, HUMM IS SEROIUSLY UNDERVALUED!!!

ASX hits all time high out the gate on Friday trades following bullish US inflation data

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So, in simple english, HUMM IS SEROIUSLY UNDERVALUED!!!

Top Stories

ASX hits all time high out the gate on Friday trades following bullish US inflation data

BHP dips as WA nickel suspended after A$6B hit; losses eased by US CPI and forewarning

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