Cvs Share Discussion Threads

[eburne1960] 17/11/2015 16:05

Looks like you've caught it just right, broken out to new highs...

[saucepan] 17/11/2015 08:38

Hi folks

I opened a position in CVSG yesterday, after it appeared in one of my ShareScope value/momentum filters. I just wish I had spotted it before; but, hopefully, better late than never.

Apart from the fundamentals (including Slater PEG of 0.33) and the obvious quality of the business, I was attracted by what I perceive as a consolidation pattern, below 700p, which has developed since late May/early June. It is something of a cup and handle pattern, which now appears to have resolved.

It shows better on the following chart than the one in the header:




Once 700p has cleared, I am hopeful that the share price will make up for lost time.

[ramridge] 26/10/2015 10:35

Generally a good stock except for the balance sheet weakness.
Net gearing too high at 118% and
Net Debt/OP = 46/9.8 = 4.6; too high when acceptable limit is 3 to 3.5
This acquisition will make these numbers worse.

[chrisgail] 26/10/2015 07:32

Another step in the right direction, remains a strong longterm hold.

[gargleblaster] 26/9/2015 11:05

IC remaining positive

CVS is pick of the litter

It's hard to fault the latest figures from veterinary practice business CVS (CVSG). Strong sales growth helped boost adjusted cash profits by more than a quarter to £23m. Most of the top-line growth can be attributed to strong underlying demand - like-for-like sales rose 6.8 per cent - but a series of acquisitions also boosted the numbers.

In the year to June CVS added 29 surgeries to its estate and one more crematorium. In total these businesses should generate more than £24m in annual sales for the group, having added £7.7m to revenues and £1m to cash profits during FY2015. Since the year-end the group has bought an additional eight surgeries, including a new 'referral centre' in Castle Donnington. By referral centre management means a clinic akin to a pet hospital to which vets can refer pets with more serious ailments.

CVS divides its business into four parts: veterinary practices, laboratories, crematoria and Animed Direct – its online retail site for pet medicines. The practices are considered the backbone of the business, and last year like-for-like sales there rose 5.6 per cent. The group’s booming loyalty scheme – Healthy Pet Club – may have helped drive organic growth. Over 51,000 pets were added to the scheme, boosting member numbers 32 per cent to 213,000.

Other parts of the business are keeping pace too. The laboratories and crematoria divisions posted like-for-like sales growth of 11 per cent and 12 per cent respectively.

Bosses admit that last year’s performance included an exceptionally strong first half, and like-for-like growth has slipped since the start of the new financial year. Yet analysts at Peel Hunt have still nudged up their forecasts. The brokerage now expects pre-tax profits of £22.2m (previously £21.5m) for FY 2016, giving EPS of 30.5p (previously 28.8p), compared to £19.4m and 27.1p for the year ended June 2015.

CVS GROUP (CVSG)
ORD PRICE: 679p MARKET VALUE: £402m
TOUCH: 678.5-680p 12-MONTH HIGH: 695p LOW: 347p
DIVIDEND YIELD: 0.4% PE RATIO: 58
NET ASSET VALUE: 66p* NET DEBT: 118%

Year to 30 Jun Turnover (£m) Pre-tax profit (£m) Earnings per share (p) Dividend per share (p)
2011 101 4.3 6.2 1.0
2012 109 3.8 5.1 1.5
2013 120 5.5 7.1 2.0
2014 143 6.3 8.3 2.5
2015 167 8.5 11.6 3.0
% change +17 +35 +40 +20

Ex-div: 26 Nov

Payment: 11 Dec

*Includes intangible assets of £79.2m or 134p a share

IC VIEW:

This isn't the first time analysts have raised their profit expectations for CVS- a point that is clearly reflected in the shares' strong performance over the past year. The stock doesn't come cheap on 22 times forward earnings, but the company's growth story - based on both the nation's love of animals and the opportunity for consolidation within a fragmented sector - is sustainable. We remain buyers.

Last IC view: Buy, 504p, 23 March 2015

[eno nedlog] 25/9/2015 16:08

chrisgail, its in an ISA with others ;-)

Eno

[chrisgail] 25/9/2015 10:57

Eno That's waht it is a very longterm hold, look occasionally and enjoy.

[eno nedlog] 25/9/2015 10:52

This may drop a bit but I am doing what Warren Buffett does and just holding this share.

Eno

[lomax99] 25/9/2015 08:14

Great results, promising outlook, short away(!)

[gargleblaster] 24/9/2015 22:30

Just realised that Henderson have opened a short position on CVS two days ago. Not a big position - but always makes you think - do they know something I don't?

[lomax99] 23/9/2015 13:58

I will be adding further on any tangible dip, a pause for breath is to be expected.

[eno nedlog] 23/9/2015 11:29

gargleblaster, Thanks, that sounds about right.
I am invested in CVSG.

Eno

[gargleblaster] 22/9/2015 22:20

eno - I think it is a case of a company having tremendous growth but bumping against a full valuation (22.2X fwd earnings) - hence the period of consolidation. If you have the patience you should be rewarded imv, but dyor etc.

[eno nedlog] 22/9/2015 13:44

Is this sideways move of the share price due to its overeaching itself in March April and June?
Or just pacing with the rest of the market?

Eno

[lollipop3] 28/8/2015 11:59

Does anyone have any info on this share?TIA

[mrmediumterminvestor] 29/7/2015 13:08

Support around the 600p mark?

[gargleblaster] 27/7/2015 10:48

Investorschamp - takeover - by who?? Pets at Home already have a massive debt millstone around their neck. Who are the other candidates?? Glib comment imv.

[gargleblaster] 27/7/2015 09:22

Sound TU imv. In line, and like for like's up 6.8%. Market seems okay with that. Am happy to hold long term!

[lomax99] 23/7/2015 20:11

Looking to add a few more.......