RE: What do investors not understand about YU ?1 May 2022 12:50
It’s a patience game now, markets are in for a big correction especially the US market which are way overvalued.
Amazingly this always has a knock on effect on the UK market even though the UK market is undervalued compared to the US.
It is time to switch to defensive plays who produce essential services that no matter what the world is doing people still need. One of these is energy, this is where YU will excel as they have and have worked it so they have a very good spread of clients
Care homes, councils, football clubs, cricket clubs, zoos, pubs, restaurants, garages to name but a few. Obviously some of those sectors wil, come under pressure like food outlets, pubs but the lights will still be on and yes some will disappear and leave bad debt.
But YU are like a dog with a bone and bills being paid as you can see turnaround from Bill to cash is down to 7 days and falling.
Keep on top of cash is the key to any business, personally cannot wait for AGM statement not that will say much other than trading so far in 2022 is extremely strong and head of market expectation and set to continue through 2022.
Now what does a 34m MC company give you
Current PE is 8
Cash was 7m and I expect after last years costs of new office and deferred VAT this will start to rocket back up
No debt - in a time when interest rates are flying this is awesome.
Turnover is growing so fast and I see they could hit 225 to 250m this year as the gas and electric price is so high, maybe even higher.
Profit again I see this rising substantially in 2022 making th current Market cap laughable if they hit say 5m profit or even higher depends on the mark up which as we knock is 9.8% gross with overheads set to fall towards 6 giving net margin of say 4%
Do the maths on 3% and 4% net margin on 250m turnover - what’s YUs market cap again ?
Yes bad debt is the one to keep and eye on and May eat into that profit.
Sign In
Follow the stocks
