News: VVA Viva Leisure Says FY23 Guidance Is Reaffirmed, page-3

First 3 Last

Share
Profile

Follow
rajkume

329 Posts.

30

24/02/23

18:31

Post #: 66453942
Share

Originally posted by saintex: ↑

Not many comments on this one.
But it looks worth having a look, for at least 2 reasons :
- focus on the interesting demographics (young adults, average age of their customers was 32 in 2019) while this demographics continues to spend for discretionary items*,
- strong recovery for their margins during the last 4 quarters (from 13.7 % in Q3 22 to 21.6 % in Q2 23).
One of the main drivers of their margins is the utilisation rate which keeps increasing from 65.6 % in Jan 22 to 73.6 % in Jan 23.

Another thing I like : they have been able to increase prices, without affecting the level of their utilisation rate.
They increased their member fees twice in 2022 (total increase of 6.5 %) expected to cover their expense increase of 6.5 %e (like for like) in FY 23.

Good that the company reaffirmed their guidance of 28-30 m of EBITDA 23.
Reminder : market cap of 121 m (at 1.34 $), net financial debt of 12 m and 240 m of lease liabilities.

They have a rather good level of free cash flow** of 8.1 m (taking only maintenance Capex, rather than total Capex).
However, the cash flow from operation (24.6 m) look high versus the EBITDA (14 m), so I need to understand the difference between the 2 elements to see if this level of free cash flow is sustainable.

Tough element with them is the valuation, given that they have a high level of leases.
So, we have to decide if we include these leases in their debt or not, when we calculate valuation ratios like FCF yield and EV/EBITDA.
Or we can just look at the PE 23 of 14.4 (based on H1 23 annualised).
The stock has also a rather poor liquidity, so you'd better have a strong conviction if you go with this one.

Still need to look deeper at this company.

* no sign of slowdown for VVA revenues so far in H2 23
** after repayment of lease

Expand

This is one of the stocks which does not have an handful of followers.

I for one are holiding them for a couple of years now, the fundamentals are solid but the stock is not popular and I strongly believe the SP is much undervalued.

A year back reasearch Analysts have given a price target of 2.90$ and have increased it now to 3.00$ .. before the Covid fiasco struck the SP was 2.79 when the number of clubs were nearly half of what is now.

VVA Price at posting: $1.34 Sentiment: Buy Disclosure: Held
2 Upvote

0 Great analysis

Reply

Top Stories

HXL

Hexima shares rise 66% on proposed acquisition of AI player Real Thing Entertainment

Drilling at Lady Ilse suggests gold-copper porphyry, grows footprint for Magmatic

Acquisitions roundup: European Lithium, Diatreme Resources and SRJ Technologies

AAI

NYSE-listed Alcoa Corp joins ASX through key JV acquisition

OPL

Opyl forms JV with UK and US consortium to bring products to the world

There are more pages in this discussion • 12 more messages in this thread...

First 3 Last

Add VVA (ASX) to my watchlist

(20min delay)
Last $1.32		Change 0.010(0.76%)		Mkt cap ! $133.2M

Open	High	Low	Value	Volume
$1.32	$1.36	$1.32	$27.34K	20.53K

Buyers (Bids)

No.	Vol.	Price($)
6	11581	$1.31

Sellers (Offers)

Price($)	Vol.	No.
$1.32	1328	3

View Market Depth

No.	Vol.	Price($)
1	1417	1.330
1	1000	1.320
6	11581	1.310
2	34500	1.305
3	2501	1.300

Price($)	Vol.	No.
1.255	3	1
1.340	2000	1
1.370	7332	1
1.380	1319	2
1.385	1000	1

Last trade - 16.10pm 24/07/2024 (20 minute delay)

VVA (ASX) Chart

News: VVA Viva Leisure Says FY23 Guidance Is Reaffirmed, page-3

Hexima shares rise 66% on proposed acquisition of AI player Real Thing Entertainment

Drilling at Lady Ilse suggests gold-copper porphyry, grows footprint for Magmatic

Acquisitions roundup: European Lithium, Diatreme Resources and SRJ Technologies

NYSE-listed Alcoa Corp joins ASX through key JV acquisition

Opyl forms JV with UK and US consortium to bring products to the world

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News

News: VVA Viva Leisure Says FY23 Guidance Is Reaffirmed, page-3

Top Stories

Hexima shares rise 66% on proposed acquisition of AI player Real Thing Entertainment

Drilling at Lady Ilse suggests gold-copper porphyry, grows footprint for Magmatic

Acquisitions roundup: European Lithium, Diatreme Resources and SRJ Technologies

NYSE-listed Alcoa Corp joins ASX through key JV acquisition

Opyl forms JV with UK and US consortium to bring products to the world

Featured News

Buyers (Bids)

Sellers (Offers)

Featured News