SSM reported "significant improvement across all key financial measures: - EBITDA of $35.8 million (8.2% margin) on revenue of $438.9 million
- EPS of 5.20 cents on a Group-record NPAT of $20.0 million
- Operating cashflow of $62.3 million with cash-on-hand of $41.1 million at year-end - Increased final dividend (fully-franked) of 1.50 cents per share payable on 29 September 2016"
It looks like a good result to me. As Maysgr mentioned, SSM beat guidance from May 30 by $800k. After comments by the CEO at the AGM last October, I made a note to check for improving EBITDA margin at the next result. It was 6.2% in 06/15, compared to 4.3% in 06/14, so 8.2% is another move in the right direction. Operating cash flow is strong, and the company has net cash of $41m burning a hole in its pocket.
The outlook statement is positive, though a bit vague: "This Group is focussed on delivering further earnings growth in FY17, subject to anticipated customer demand and ongoing success in mobilising recently secured contracts."
Technically, it has just broken through resistance at about $0.87, and I would see this as very positive if the SP rises after the result (with technical and fundamental aspects in sync).
At $0.91, the PE ratio is now 16 and EV/EBITDA is 8.0.
SSM Price at posting:
91.0¢ Sentiment: None Disclosure: Held
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