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sure np! I think we are saying the same thing but with slightly different numbers. I pay for financial data so I would hope their research is more complete . The industry ratios provided are averages across 11 companies in the freight and logistics services market.
tep1 - DX’s broker finnCap is forecasting EPS of 1.4p for this year, but they’ve always been quite conservative, so I wouldn’t be surprised if 1.5p is achieved. RMG’s PE ratio is currently shown on this website as 30 – I’d settle for that for DX… for the time being.
Pianista - we are still probably taking swings in the same ballpark, but just to say stockopedia have adj. EPS of 1.32p. Another point, 12m rolling industry forecast PE ratio is 17 . Ok DX is not so great here compared to industry based on "current" earnings, although they are far from the worst! But if you look at price earnings growth, DX are 2nd in industry with 12m forecast PEG ratio of 0.4. Too my point earlier, management expect to exceed forecast earnings for 2021:
· Nonetheless, the Board now anticipates that DX will materially exceed current market expectations for adjusted profit before tax for the financial year."
· Trading to date in H2 is significantly ahead of the same period last year, in line with management expectations, and the Board expects further strong progress in rebuilding profitability this financial year. It views prospects further ahead with an increasing level of confidence.
This is why DX trade at such a high PE relative to industry currently. A 50% increase in the size of the group fleet is icing on the cake in my opinion. Management are advocating yet more confidence in future earnings and growth of the company. I am invested here because DX are probably most likely to further exceed forecasted adj. EPS FY22 of 1.87p. I am lot more confident we'll see a revised EPS further north later this year!
Great board today I thought. Thanks to all contributors. Onwards and upwards.............
Simply Wall St are not known for accurate, in-depth analysis.
Adjusted EPS for DX for the current year is forecast to be around 1.5p, which implies an SP of 45p at the "sector PE of 30".
However, Clipper's PE is 36, and if DX merits similar, this would imply an SP of over 50p.
All I would say is that 40p+ is eminently achievable this year.
Firstly, this is a turn-around stock. Secondly, the analyst is only telling half the story. He has is based his P/E on reported earnings. 2021E EBITDA is 7.9M which means a forward P/E at todays prices of 22x. Haven't DX already reported recently they are ahead of expectations for H2?
I agree Chelsea. It seems a bit negative. Mind you I take any analyst view with a pinch of salt. All you can go on is what the directors have done and continue to do. DX have a clear strategy and clarity of thought and actions. Not so common on the AIM. !
Thanks for sharing the link Ports. Whilst I concede I am optimistic about the future of this share, I do think that is an overly pessimistic article and one which is very short of the material facts we have seen in recent RNS.
However, each to their own when it comes to investment decisions :-)
Anyone else pick this up over the weekend.
https://finance.yahoo.com/news/uk-0-30-dx-group-045828103.html.
I agree Pianista. It's good to have more vehicles on the road with the added benefit of visability and brand awareness.
It's all down to sales and marketing now.
"Well they can certainly talk to the talk... can they walk the walk"
Very true, portswigger, but I don't think they would issue such a bullish RNS if the current year, ending in just a couple of months' time, was not going extremely well.
Well, confirmation of infrastructure growth to meet expected business growth.
Wording is interesting. Further investment planned and " Dx sees significant growth in freight and express and expects to see increased market share throughmarket leading customer service standards"
Well they can certainly talk to the talk... can they walk the walk "
It seems that Dx want to be the best at what they do. I certainly think they can dominate IDW. By focusing on the UK perhaps the guys at DX have seen an opportunity while the international carriers are struggling with the implications of brexit which have caused immense parcel delivery problems in UK to/from Europe which really has been a shambles since new year. I know to my cost.
Increasing market share through better customer service. ? . Well if they do that to any degree especially in express... no one will applaud louder than me.
If expanding your vans by 50% isn't a sign that business is going well, then I'm not sure what is. A good enough sign for me anyways. Now I sit and wait for it to translate into higher figures all being well.
oh my this is very interesting news.
Obviously has implications for the next trading update: they can hardly be expecting to issue an underwhelming one after such a positive RNS.
Let's see if the SP responds...
A 50% increase in the size of the group fleet, across both divisions. Wow.
Either the extra business is already secured or there is total confidence it is coming, as they simply wouldn’t invest millions of pounds to have vehicles sitting redundant in depots.
Still needs to translate into bottom line figures of course but very positive.