All my friends yawn when I mention it - and jump to Flight Centre - but I think they're wrong, here's why.
The Annual Reports for the last 2 years are very different beasts. 2008 is for JET only, but 2009 shows the results for Qantas Holidays in the 2008 column, along with the combined numbers in the 2009 column.
Using these you can get combined figures for 2008, and its much, much better than 2009. Really shows how bad last year was for these guys. 2008 was much better though, and surely a better guide to whats to come than what happened in 2009.
The combined income is about 225M, and using a profit margin og 16%, which is the average of the 2 now combined entities, you get earnings of about 36M, or about 16.5 cents per share. On a "good day" multiple of 14 thats about $2.30 a share.
No debt and heaps of cash too.
This "back of an envelope" calculation doesn't take into account any savings they may have made as a result of the merger or the downturn, so who knows?
Also, I don't even know if the Qantas Holidays figures includes Qantas Business Travel. Could be another contribution to those numbers.
But it's no dog, and at some stage people will take notice.
JET Price at posting:
$1.38 Sentiment: Buy Disclosure: Held
