WLD vs AAC | HotCopper - ASX, Share Prices, Stock Trading, Stock...

WLD vs AAC | HotCopper - ASX, Share Prices, Stock Trading, Stock Market, Share Trading Forum

1. Hi Guys,
   Pls do not lose your confidence to this share. I had just compared WLD to AAC half year report, and I realized this share WLD is very much undervalued!
   Revenue:
   AAC 1H Revenue is 258M
   WLD 1H Revenue is 275M
   Cost of sales:
   AAC is 256M
   WLD is 224M
   EBITDA:
   AAC is 92M (how come?)
   WLD is loss of 6.8M (How come?)
   Then I started to dig further, how come WLD has higher revenue and less cost, but having much lower EBITDA?
   The reason behind are astonishing:
   1. AAC included cattle fair value adjustment. which indeed is not supposed to be taken as extra profit of the company, because at the end this figure will turn to be beef/cattle sold to customer which is just a form of revenue . That is why in its special note, it mentioned operating EBITDA is the key indicator to monitor the company performance. And their operating EBITDA is only at 11M.
   WLD on the contrary, its EBITDA did not include fair cattle value adjustment, also it is at loss only because it incurred much of once-off IPO cost which resulted a drop down from 26.9M of proforma EBITDA  to minus 6.8M of statutory EBITDA. Taking off this once-off factor, the normal half year EBITDA should be over 25M without any doubt.
   All my comparison was to say WLD is even a much more profitable company than AAC!   I
   I don't think those fund managers would even realized the difference hidden behind the two company's reports.
   Let's wait for WLD SP bounce back to 1.40s once they discovered this.