Friday, December 30, 2016

Is Mainfreight Worth 20 Bucks Plus a Share?


Image result for 20 4 note nz


The last time we visited Mainfreight Ltd [MFT.NZ] it was worth just over 10 bucks, just 6.5 years latter it is worth $20.71.

We should look at a few facts first to dispel any myths surrounding the company.


2016

*Net Reported Profit   88 mil
*Price Earnings Ratio (P/E) 22.65
*Earnings per Share (EPS) 96.24
*Net Tangible Assets per share 329.21c
*Total Net Div Paid (last full financial year) 40c
*Div Yield 1.79%
*Market Cap 2,079,000,000


2011

*Net Reported Profit  26 mil
*Price Earnings Ratio (P/E) 13.92 
*Earnings per Share (EPS) 47.88
*Net Tangible Assets per share 1.86
*Total Net Div Paid (last full financial year) 19c
*Div Yield 2.24%
*Market Cap 880,000,000


Source - Morningstar


The figures obviously speak for themselves.

The 2 sets of figures make the 2016 figures look good by comparison. 

I'm not going into the many other sets of figs like net/debt equity or the net margin as a % but they are generally within the range of a good corporate citizen.

Mainfreight would not operate any other way.

If you want to delve into these find another blog - I'm no longer capable of doing such things. 

Except to say if they ever break with tradition and find another way of reporting profit, I'm outta here.

I don't think that's going to happened any time soon because it seems ingrained deep within the Mainfreight culture that flim flam and politically correct nonsense does not exist.  

Good.

The company are looking set to tap that 3 billion sales mark within the next 5 years and there are all sorts of lofty figures that they have as a company as aspirations to set.

Now they just have to achieve these.

Not easy.

But logistics isnt easy and its not supposed to be.

Every client that they have is picked apart and put back together again to see if there is a more efficient way of doing things.

They seem to (and I say seem because I've only seen them operate at a distance not actually operate) really genuinely care about every client, like they are all on the same team.

I genuinely think this company could be a big player within the global logistics community within the next 10 years.

It really is up to them if there share price goes up from here - they are not going to split the shares.

Is it worth 20 plus bucks a share?

Sure, if you believe the company is on an every increasing arc of successfulness.

But if your like me you'll wait for that nervous investor who sells out, that big overseas institution who decides to leave NZ. 

The price then drops then your in like a robbers dog if this company has been on your radar for some time.

Your welcome.


Mainfreight @ Shareinvestor


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