Ryan Mee, CEO of Fulcrum Metals, reviews FY23 and progress on the Gold Tailings Hub in Canada. Watch the video here.
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THE divi thats the problem . After the results thought to myself 63 iwill be hit again .
Simply Wall Street has fair value of £1.22. What is going on?
JTC Employer Solutions Trustee Limited has been selling, could help explain reluctance of share price to move northwards.
See TR-1 from today.
Couldn't rule this out, given analyst call tone and this in the results: "...identified surplus capital is returned to shareholders through share buy backs or special dividends "
Dropped 13% from Tuesday open, earlier today. By far the worse reaction to any within the sector. Unwarranted in my view.
Like most small caps, this could now just go to sleep until the next results are out......I hope not!
Very pleased with that.
Will look to add and build my ISA position and do the same with next years ISA allowance to.
I am hoping that some of the analysts participating caught the number of times the word 'undervalued' was used.
Up 10% - that should push up the sector as the market leader. Very encouraging.
Buy and forget, this is a no brainer imo. I did the same with KIE in 2022. There is too much cash to ignore in this one. Water is where the easy money is. Gla
For what's it's worth, Investor's Chronicle think the valuation is off too:
https://www.investorschronicle.co.uk/news/2024/03/12/costain-remains-undervalued-despite-revenue-visibility/
Happy to keep adding until fair value reached.
It makes for an interesting presentation tomorrow.
I'll set my alarm clock to listen in.
Looking ahead, the company said its expectations for "further progress" in 2024 remain unchanged, as it held on to guidance of an adjusted operating margin run-rate of 3.5% during the year, rising to 4.5% in 2025. Its longer-term ambition to grow margins to above 5.0% still remains.
"The quality and balance of our forward work across our two divisions gives us good visibility on future revenue and margin," Vaughan said.
All this from sharecast is what I see. Solid. Just needs to break channel and head up to that 70-75p range first.
In order for Costain to trade inline with the valuation of Galliford Try, Costain shares would have to rise to 82p. Inline with Kier Group to 1.05p. And inline with Balfour Beatty to 1.25p.
Exactly that m007j and it is an easily identified takeover target.
Can you name me any other listed company in the UK that actually makes more Profit per year than the actual difference between its balance sheet cash and its market capitalisation.
Once the results are fully digested you would expect COST to rerate higher and to become more in line with its peers.
Costain is the cheapest in the UK construction sector on a EV/EBITDA valuation basis at the current share price of 69p.
Costain.....................0.5x
Galiford Try..............1,2x
Kier Group................2.4x
Balfour Beatty..........3.5x
I don't think a £225 - £250m mcap is ridiculous (80-90p).
Think it's too cheap based on known metrics, even those critical of the broadly flat net cash FY24 projection have to acknowledge that's a £25-30m cash increase. They clearly say the current cash pos is down to favorable cash flows but that aside, it's still bloody strong cash generation.
UK companies are so unbelievably beaten up. A P/E of 10 should see this at £200m - £250m and that's before you look at cash in bank or business growth opportunity (water/AMP). Joke valuation.
PS
And current CEO wants 3 x dividend cover when previous was roughly 2 x.
Will be roughly 4p when all washes through imho
Ant1986 - Yes, and as you've already alluded, I'm topping up on the hope that the new government will see infrastructure investment as the obvious way to kick-start and grow the economy. I'm not expecting any 'bagging' here, but a steady improvement will suit me as a LTH.
Mainstreet
There was a rights issue in 2020 which raised the shares in issue substantially. So that's a big part of it. The other big part is that the 1.2p equates to £3.3m as a cost which is the maximum he can pay without having to overpay the pension fund. This agreement runs to 2027, but as he noted in the report, the annual pension position review is 31/3. He may use that as a way to pay a higher divi. He has the cash but he's very cautious....Overall the business is back from its disaster jobs to a level where the Market Cap was previous double (say 2017..) what it sits at today!
Mixture of macro environment and overall balance sheet strength. It's very similar, relatively, to Kier's declared dividend.
Indeed, a very flat response to a robust result, though it's only been an hour in fairness.
Can't believe more hasn't been made about the bullish 4.5% operating margin. That's £58.5m profit on £1.3bn turnover. Cost is trading at a complete snip against that projection.
Analyst call, tomorrow.
What a crap reaction from the market.
no wonder firms want to list in the USA
Question from a newbie. Sorry if the answer is obvious and I missed it.
In 2018 they seemed to have a similar T/O and profit. But the dividend was 15p. Why is it only 1.2p now?
In 2024 no amortisation, reduced one offs, and lower contributions to the pension fund. Perhaps the parsimonious divi.
"Ahead of Market Estimates"
First class numbers all round but the one that stands out for myself
"High quality forward work4 position of around three times FY 23 revenue."
Then look at the cash Costain has versus the market capitalisation. £164M v £188M. No its not a misprint.
I was looking at the operating margin progression and it’s well on track. At 3.8% at present and a very bullish reinstatement of 4.5% in 2025 with goal at 5% - it’s a business changer.
Dividend very welcome too, had half thought it wouldn’t come with others slightly lower than expected.
We should see the UK PLC back infrastructure and then we have the tailwind too.
Spotted this in Galliford’s results - “ Our Environment business continues to benefit from high levels of AMP7 spending by our water sector clients.”
Should transfer here very well?