Some really simple figures based on recent trading update:
Revenue HY10: $140.8m HY11: $172m
EBITDA HY10: $44.3m HY11: $52.2m
Adjusted NPAT HY10: $17.7m HY11: $19m
Dividend payed in 2010 was 1c per share, post 3:1 consolidation this is 3c per share.
For FY2011 we therefore have: EBITDA of $96.5m; Dividend of 3c per share; 366m shares on issue.
A rought P/E may be calculated by:
SHARE PRICE / [(EBIDTA - DIVIDENDS) / SHARES ON ISSUE]... So therefore:
P/E Ratio = 1.45 / [(96.5m - 11m) / 366m] P/E Ratio = 1.45 / 0.23 P/E Ratio = 6.3
Now its been bandied around by a number of brokers that this RIDICULOUSLY LOW figure is justified by relatively large debt position of the company. I believe that given the failure of IDL to acquire longwall, a substantial amount of debt will be paid off this FY, to the tune of up to $50m. Therefore this debt element will become less relevant. Couple with increasing demand for IDL's mining services and products (in the case of the latter IDL being leader in field tech wise) both in Australia and China, and one innescapably comes to the conclusion that IDL won't be trading at these PE multiples much longer
IDL Price at posting:
$1.42 Sentiment: LT Buy Disclosure: Held
