yes they are great numbers as far as EBITDA, NPAT, and cash generation. The 44% growth in EBITDA over last year on a revenue increase of 14.5% also shows their margins are moving up strongly.
2005 margins were 5.11M/52.2M (9.8%) 2006 margins are 7.37M/59.8M (12.3%)
This equates to an increase in profit margins of 25.5% over the last year.....very encouraging as we enter an even steeper growth period.
Sorry is I suffer from tunnel vision, but CHL is basically the only thoroughly researched stock I'm involved with at present. I work full time so just keeping an eye on my sole stock is all I have time for at present. Still there isn't too much out there that has the potential to reward like this one does so the time for me to diversify a bit has not yet arrived.
Just being extremely conservative and looking at profits to grow by 44% again next year would see EPS reach 2.53*1.44 = 3.64cps. So conservatively, at 32c, the stock is trading at a current year P/E ratio of just 8.8.
Campbell brothers should hang their heads in shame at offering such a paltry bid, when their own shares (and most of those enjoying the unprecedented growth of the coal mining services sector) trade at 20 times earnings.
Perhaps a bid for CHL of 70c (20 times this FY EPS) could be treated a little more seriously.
CHL Price at posting:
0.0¢ Sentiment: None Disclosure: Held
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