Nice outlook and predictions there, If that could be realized bring on the $2+ share price mark.
That would hit an EPS of 31c a whopping 181% increase! I can hardly contain myself
For last year they only managed an EPS of 11c on the 3.2b Revenue... 122m profit or a pitiful 3.8% profit margin.
With the current PE ratio of say around 8 if your outlook is managed that would justify the share price being at $2.48!!!
Given that then spotless would be showing growth, the PE ratio we are trading at would probably be closer to 11 or even market average of 16! so $3.41 or higher! I must confess that a PE of 16 probably wouldn't happen because of the Debts that SPO have but stil those figures are pretty promising!
The dividend payment of 70% would also be amazing given that management have stated that they wish to reduce the debt. So to do that while maintaining a 70% div payout... wow.... I take my hat off to them. 200 mil that will make for an annual 18c div! I bought at around 98c a share... far out my annual yield is 18.36% p.a just with dividends on this stock!
Which acquisitions have they made that are gonna boost revenue by this 300mil of which they will make a 10% return on? I gotta add this to my Spotless analysis
Just a heads up though did you count for amortization, costs of quoting contracts, depreciation & Tax when you added that 350mil profit and then out looked a 70% div pay-out say around 200mil? Because those lovely EBITDA figures they love throwing around really mean nothing when unfortunately those things they exclude do exist. Especially when deciding a dividend payment amount
SPO Price at posting:
91.0¢ Sentiment: Hold Disclosure: Held
