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27.0¢ ashley services group limited

Thanks pCap. Great work.

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148

04/02/23

15:47

Post #: 66071343
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Originally posted by pCap: ↑

If ASH can sustain at least $4m p.a. EBITDA from this acquisition (which is the low end of the forecast 2023 range) then we should see a major rerate from OPW. I've updated the forecasts below for the acquisition which includes 6 months contribution in 2023. This indicates that ASH could hit $1 and still have a P/E of less than 10x for fiscal 2023. We are also likely to see continued healthy dividend growth with 7.3c for fiscal 23 (I've revised my dividend payout assumptions from 75% to 70% to allow additional debt paydown). That said, I don't know much about offshore labour hire arrangements and how sustainable they are when labour market pressure ease and/or migration increases. I would have also liked to see the existing owners keep some skin in the game and the earnouts appear fairly fixed. Nonetheless, at 79c, ASH is cheap even if the acquisition performance is weaker than expected. Looking forward to seeing the H1 results and dividend.

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Thanks pCap. Great work.

ASH Price at posting: 79.0¢ Sentiment: Buy Disclosure: Held
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(20min delay)
Last 27.0¢		Change -0.005(1.82%)		Mkt cap ! $38.87M

Open	High	Low	Value	Volume
27.5¢	27.5¢	26.0¢	$19.05K	72.80K

Buyers (Bids)

No.	Vol.	Price($)
3	17547	26.0¢

Sellers (Offers)

Price($)	Vol.	No.
27.0¢	1264	1

View Market Depth

No.	Vol.	Price($)
3	17547	0.260
1	11764	0.255
4	189000	0.250
1	30000	0.245
1	80587	0.240

Price($)	Vol.	No.
0.270	1264	1
0.275	8949	2
0.280	20146	1
0.285	9952	1
0.295	14168	1

Last trade - 15.47pm 01/05/2024 (20 minute delay)

ASH (ASX) Chart

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