Significantly undervalued, page-11

Anyway from my quick glances at the half year result so far I am a happy shareholder.

The initial headline EPS might be a tad flattering as they have a significant jobkeeper number in that they will pay back.

What stands out to me is what they have done with the dividend, and where that is heading. Management want this to be a good dividend paying stock. I think they would want to be extremely confident the next dividends for each half will be at least 7 c also, hopefully more. Perhaps that is the simplest way to quickly assess where the normal EPS will settle down at. This 7 c div is about 50% of normalised NPAT for this half. They want to head towards paying out 60-80% of NPAT. That to me implies a very low P/E and a very high dividend yield.

Outlook is the compulsory standard conservative stuff as we all know some spending might have been pulled forward from covid etc. Things started 2021 still strong though. Room for store roll outs. From the numbers though a share price of $2 indicates to me the market well and truly is pricing in a very cautious growth outlook to begin with anyway.