Take a look at CAPD, SGC, FAN, STVG, COST, INL and BOOT
Capital Limited (LON:CAPD) – just praying for an early ‘hat trick’
A great set of results for the year to end December, saw the mining services group report a 68% increase in 2021 revenues to $226.8m ($135.0m) and a 226.6% gain in adjusted net profits at $36.6m ($11.2m), helping to generate basic earnings 141.7% higher at 19.2c (7.9c) per share.
The group could see even further plusses this year. Tamesis Partners are going for $274.6m revenues, and $38.6m profits, with earnings of 20.6c per share.
Peel Hunt, rating the shares as a ‘buy, go for $268.1m sales, $39.1m profits and 15.1c of earnings. Their aim is for 139p a share.
While Berenberg, also rated as a ‘buy’, see $272m of sales, $30.0m of profits, with 15c per share earnings and a 3c dividend. Their hope is for 138p a share in price.
But you just know that its revenues and profits will do better than those estimates.
The shares have yet to give me a Target Price ‘hat trick’ but I do feel that it is very close indeed to scoring.
The group’s shares at around 91.10p are destined to break the 100p level very soon.
(Profile 23.07.19 @ 48p set a Target Price of 76p*)
(Profile 22.10.19 @ 61p set a Target Price of 100p)
(Profile 03.08.20 @ 77.5p set a Target Price of 100p)
Stagecoach Group (LON:SGC) – cash bid rings the bell
If bids take too long to get underway it is not surprising that others will just pop up and snatch the prize.
That is what has happened with the UK’s largest bus group.
The company has reversed its merger with National Express and has now agreed a £595m cash takeover bid from DWS Infrastructure, which is part of the Deutsche Bank group.
The deal is worth 105p cash to Stagecoach holders. The shares closed last night at 104.75p.
(Profile 07.12.20 @ 73.5p set a Target Price of 100p*)
Volution Group (LON:FAN) – market-leading positions continue to drive business
This group is a leading international designer and manufacturer of energy-efficient indoor air quality solutions.
Yesterday morning it announced its interim results for the six months to the end of January.
They were quite promising – showing a 13.6% increase in revenues to £149.6m (£131.7m), a 14.7% improvement in adjusted pre-tax profits at £30.0m (£26.1m), a 57.7% lift in interim earnings at 8.2p (5.2p) and a 21.1% rise in dividend to 2.30p (1.90p) per share.
The Ukraine crisis is unsettling going forward, however, the group’s management is sounding positive for the full year to end July.
Estimates are for £302m sales (£273m) and £58.9m profits, worth 22.5p in earnings (21.0p) and dividend of 6.9p (6.2p) per share.
Charlie Campbell at Liberum Capital rates the shares as a ‘buy’ and has fixed a 560p price objective.
They closed last night some 52p down on the day at around 403.25p.
Hold tight, even though it might get bumpy.
(Profile 23.05.19 @ 174p set a Target Price of 250p*)
(Profile 25.01.21 @ 301.5p set a Target Price of 350p*)
Henry Boot (LON:BOOT) – AGM due in under two weeks
One of the UK's leading and long-standing property investment and development, land promotion and construction companies, Boot will be announcing its 2021 results on Wednesday 23 March.
Only last Monday the £415m group announced that, together with the Greater Manchester Pension Fund, it was now underway on a £66m joint redevelopment of a 10-storey building slap bang in the centre of Manchester.
The group’s shares are currently trading around the 310.50p level, just short of the 322p at which they peaked recently.
I am still very hopeful that my price aim will be achieved.
(Profile 24.05.21 @ 276p set a Target Price of 340p)
Inland Homes (LON:INL) – needs a big push to get it going
This property development group will be holding its AGM on Monday 21 March.
Lacking any real press coverage and a no broker inspired following from institutions, the group’s shares are currently just bouncing along on their bottom – now just 45.75p.
Considering the massive discount to net assets and the prospects of very useful profits from its development programme, I remain totally surprised that the group’s shares are this low.
Perhaps a joint financial public relations and broker push would help.
I know that my faith in this company will be rewarded – sometime, perhaps it needs a change of advisers to happen.
(Profile 13.08.19 @ 68p set a Target Price of 110p)
(Profile 24.10.19 @ 77p set a Target Price of 110p)
(Profile 29.10.21 @ 46.5p set a Target Price of 60p)
STV Group (LON:STVG) – tune in to value
A record performance for the 2021 year to end December shows that this media group really is going great guns.
It reported revenues up 35% at £144.5m (£107.1m) and adjusted pre-tax profits up 42% at £23.6m (£16.6m), that pushed earnings 32% better at 45.6p (34.5p), covering a dividend 22% higher at 11p per share against 9p previously.
The group’s shares are currently trading at around 325p, while its brokers, Shore Capital, have a ‘fair value’ estimate out at 516p per share.
For the life of me I have always found it hard to reconcile some price-to earnings ratios that exist from sector to sector.
So just why does the market give this company such a low rating?
Now on just 7 times historic that is far too low – especially when I look around the market generally and see scores of companies with totally questionable valuations.
Anyway, I rate this group as a real generator of value and my price objective remains totally intact.
(Profile 10.12.21 @ 345p set a Target Price of 425p)
Costain Group (LON:COST) – too low a rating
This is another stock that suffers a low market rating despite its solid £3.4bn order book and improving performance in margins and profits.
For the 2021 year it had a £1.18bn revenue, a £26.3m profit, and earnings of 9.6p per share.
At the year-end the £134m capitalised group had a £119.4m net cash balance, up from £102.9m in 2020.
Analyst Joe Brent at the group’s brokers, Liberum Capital, estimates £1.21bn in revenues for this year, profits of £33.0m and earnings of 9.77p per share, with dividends being held.
He has a ‘buy’ rating out on the shares, with a price objective at 80p.
They closed last night at a mere 37.75p.
(Profile 05.09.19 @ 151p set a Target Price of 250p)
(Profile 02.08.21 @ 55p set a Target Price of 69p)
(Asterisks * denote that Target Prices have been achieved since profile publication)