Zigup Share Price (ZIG)

As always the Stock Market expects EPS/profits to always go up and when they don't they sell believing the company is somehow going down the pan (just look at what happened to Greggs recently - drop way overdone but even now recovering is still on a PE 0f 11.5 they are hardly overpriced for a well run business);

So as not to panic We need to understand why the EPS dropped.

1. Several of the previous years were affected by the high resale value of 2nd hand vans due to shortages of new stock due to Covid. Capital could not be spent on new vehicles increasing profits and inflating NAV

2. This year 2nd hand values have returned to market norms AND capital has been spent to buy new vans and lower the average age of vehicles back down to their more normal avaerages. (rectifing back to normal trading)

3. A cyber hit on IT systems hurt as costs were incurred to rectify and manhours diverted from seeking new business and efffieicetly running existing.

However the underlying EPS 58.4 p (Incorrectly stated as 55,2p on the ZIG share price page hence the PE at 5.96 is also incorrect) removes all the above, compared to the last few years inflated EPS from Vehicle sales EPS of 58.4p shows the company is doing well.

I track NAV as one of my indicators of company health Zigup NAV is now 374p it has risen for everyone of the last 5 years from 272p

at the same time intangible assets have been reducing from £285m 5 years ago to £206m

so in other words year by year not only is the NAV growing but also more and more of it is in physical saleable assets

2026 will be more normal, 2nd hand values are nearing long term trends, new vans are available, and discounts return. Spain is growing well, UK is static in vehicle area but other value addednareas offer growth.

I agree with previous poster seems rude not to buy a good company on an PE of 5.65 and a dividend near 8% when I release cah on monday I will be topping up.

Well Mr Ward has got skin in the game with purchase today. Must admit rude not to add at this price and have added. Tuck away forget and collect 8% GLA

Actually try to learn about their business before spouting rubbish. They did a major overhaul of their car fleet last year and made a significant profit. This is not recurring income (there are always some fleet sales but last year was significant compared to the current year's).

Unlike yesteryears this profit isn't accounted as exceptional and the income and expenses are accounted through sales and cost of sales.

Quick back of the cereal packet calc(literally thats what I used)

At 330p (gone up a bit since I did Calcs)

On declared EPS - PE = 9.26

On underlying EPS - PE = 5.65

Dividend = 8% covered approx 1.5X

NAV = approx 380p

Not many shares out there with such good credentials - now we need to see the promised earnings growth in the mid to upper teens.

Overpriced and very poorly run. After integration that seems to be pretty disastrous Revenu down, profits down and debt up significantly. Then all the blow hard verbiage in the results comments but the eps and numbers speak for themselves. Time to change the CEO surely. Probably got further to fall as analysts rerate negatively over the next few days / weeks.