||EPS - Basic
||Market Cap (m)
|Construction & Materials
Epwin Grp Share Discussion Threads
Showing 401 to 424 of 425 messages
|Another good day! Hopefully 120 tomorrow.|
|Ive dipped a toe in the water following the IC article. Very cheap based on fundamentals and in a sector that will benefit from the government housebuilding initatives. Plus a P/E of 7 and a dividend of 6%. A gem.|
|It probably was ;-) nice to see some upward momentum though.|
|I thought it was a rhetorical question mattboxy, but you could be right.|
|I'll talk to myself but I think we may be re- ratingBe nice to see 120s on the chart|
|Great finish are we starting to rerate??|
|I think we all knew that spike would be welcomed by sellers. Schroders now < 5%.
Asagi (long EPWN)|
|Yes, a very bullish article.|
|Haywards, post 388 says it was tipped in the IC (on line) earlier this week but today will be in the paper version. Might explain some wider interest.|
|Tipped somewhere following trading update? IC perhaps?|
|Yes I did wonder about that, speedsgh - didn't want to mention placing though, there's enough selling pressure already:) If they do let's hope it's sensibly priced and earnings accretive.|
|paleje - re Panmure appointment...
EPWN had net debt of £29.9m at 2016 interims (net debt £14.4m at 2015 finals; net debt £2.2m at 2015 interims) so net debt has been steadily increasing. Maybe they envisage having to raise cash via placing to help fund further acquisitions + have appointed Panmure to bring in new IIs?|
|Agreed nothing new, another report today from Edison which is paid for I think. Similar view, modest growth with good income.
I suppose the questions are how reliable are earnings going forward and can they do anything to improve them. Acquisitions might be the way, if any, otherwise it will probably be range bound imo.
I didn't understand why they appointed Panmure in December as joint broker, why would they need 2 brokers if they're content to carry on same old. I still don't know.|
|Thanks paleje. Nothing new there, but nice to see Simon is sticking with it.|
|They've got a glitch I asked him about it, I had same problem, I've seen the full article now but could only access it in incognito mode on chrome, don't ask me why because i haven't a clue. I've pasted it below, I don't think they'd mind as their website clearly has PROBS:-
Epwin on solid foundations
Aim-traded shares in Epwin (EPWN:106p), a manufacturer of extrusions, mouldings and fabricated low maintenance building products, have also failed to join the equity market rally since the company’s interim results ('Delivering results', 15 September 2016). I advised buying the shares at 110p at the time and feel an overdue re-rating looks highly likely in the coming months. That’s because a pre-close trading update ahead of full-year results on Thursday, 6 April 2017 points towards pre-tax profits rising by 24 per cent to £24.3m in 2016 to deliver a 17 per cent rise in EPS to 14.2p and support a modest rise in the payout per share to 6.6p.
This profit growth is clearly at odds with that of rivals who are also selling into the moribund repair, maintenance and improvement (RMI) market, and is being driven by the board’s shrewd decision to use the company’s lowly geared balance sheet to make earnings accretive acquisitions, a key reason why it listed on the Alternative Investment Market at 100p a share a couple of summers ago when I advised buying ('Moulded for gains', 29 July 2014). Indeed, Epwin has invested £50m including future earn-outs acquiring three companies: Wrexham-based Ecodek, a leading manufacturer and supplier of wood plastic composite; Tamworth-based Stormking, a leading supplier of moulded GRP building components to the housebuilding and construction industry in the UK; and National Plastics, a national distributor of building plastics to the trade. These businesses contributed £18.4m of revenue and £3.7m of operating profit on a margin of 20 per cent in the first half, and I understand that their performance since then “continues to be encouraging”, so underpinning the aforementioned full-year profit forecasts.
True, there is no doubting that some of its end markets remain challenging, prospects of a rebound in the RMI market look slim, and the weakness of sterling is leading to cost pressures. However, this all looks factored into a PE ratio of 7, a rating at odds with a company that is set to report a 21 per cent post tax return on equity. The modest rating is certainly not justified by any financial concerns: analyst Andy Hanson at house broker Zeus Capital estimates operating profits of £24.6m covered finance charges more than 17 times over and Epwin ended last year with net borrowings of only £21.3m, representing less than its operating profits. Cash generation remains strong, so much so that free cash flow of £12.1m is likely to improve this year as capital expenditure is reined back from £12.5m to £7.5m according to Mr Hanson’s models, leaving room for the company to recycle even more of this cash flow back to shareholders.
But even without another dividend hike, the lowly rated shares still offer an attractive yield north of 6 per cent with the payout covered more than two times. That represents value in my book and I maintain my target price of 140p. Buy.|
|His article hasn't been avaiable on IC website all day afaict|
|So he has paleje, but curiously, his article has now disappeared from the IC web site.|
|Simon Thompson has tipped these today.|
|Panmure reiterated their buy target 185p.
Seems a tad ambitious seeing the tepid response so far but sometimes slow burners make a headway several days after an update. A bit each day or even each week would be ok by me.|
|Reassuring update :)|
You're probably right BUT what I would say is that the market has priced in a potential failure here and thus if it sees this TS as NOT confirming it may re-rate. Actually I think Mr Market sees sector headwinds (landlords) as the problem. This is almost a bet upon EPWN suceeding in a tough environment.
The Zeus note I believe is aligned with my thinking. Patience may be needed here for re-rate however.
We will see...|
|'Onward and sideward' I like that one and don't disagree.
But PE:7 seems cheap for relative safety with a 6% yield and modest capital growth so it might attract a bit of interest from income seekers.|
|Solid, but nothing there to get the pulse racing. Can't see it moving the share price, but our rather excellent divi looks safe. Onward and sideward in this case.|
|Looks like yesterday was an attempt to get weak holders to sell - hoping for 110p+ today.|