Hi,
It looks like the management has done some sharp moves with restructure and the company starts looking solid. Thumbs up for CEO. I like the fact they are focusing on Sheridan and Bonds only - great future here especially with international potential. Berlei is a cool brand to have too. Supply chain cost cutting definitely nailed it with less SKU's, DC's and mediocre brands. Finally after many years of turning around the company, the balance sheet and profitability looks solid and stable for the first time.
so I took 170 mil equity (included 20 mil op cash flow for H2) and 38 mil npat for FY 15.
55mil EBIT before abnormals * 0.7 tax. I did very very conservative version especially with H1 EBIT of 31 mil before abnormals.
so ROE = 22.5% and with 14% required shareholder return gives 2.349 multipling factor.
so the intrinsic value is = Equity per share = 170/917= 0.185*2.349 = $0.435.
Entry at $0.400 is a good deal especially for a long term. For me today it was a buy.
PBG Price at posting:
40.5¢ Sentiment: Buy Disclosure: Held
