This seems expensive if it appears to be firmly ex growth to me.
EBIT = $410 approx Finance expenses (2 times first half figure)= -52 NPBTA = $358 factor in tax (x 70%) = $251m M Cap at close = $3.4b PE ratio = 13.5 times approx
Gearing now just a bit higher, and certainly wasn't low before, even after divesting everything possible over the last number of years.
On morningstar it shows EPS (before Abs) declining for the last four years (soon to be five years, and financial leverage flat, even with revenue up the last three years (margin compression?).
Watch out if it gets rerated by analysts to a 12 times business = SP down another 10%.
Rerated to a 10x = SP down another 25% from here.
I've shorted it for a quickie. May regret it - will find out.
TOL Price at posting:
$4.73 Sentiment: ST Sell Disclosure: Held
