Wickes Share Discussion Threads

[wad collector] 26/3/2023 11:04

I like to be optimistic , but putting a target of 360p in a year looks so far away that it is hard to take seriously. An implied P/E of 25 is rather unlikely in the sector.
I checked and they are not an inhouse broker !
It's a big yield but this year is barely covered. I like Wickes as a customer but I can't decide whether this is a bargain buy or a sign of reduced income ahead.

[tole] 26/3/2023 07:09

Wickes cheap and at top end of guidance, says LiberumWickes (WIX) prelims have revealed its resilience and shows 'the deep value on offer' at the DIY and trade supplies retailer, says Liberum.Analyst Wayne Brown retained his 'buy' recommendation and target price of 360p on the stock, which fell 1.6%, or 2.3p, to 142.7p on Thursday.Full-year pre-tax profits of £75.4m is at 'the top end of guidance and net cash of £100m is once again standout, allowing a flat dividend year-on-year,' Brown said. 'These results demonstrate the benefits of Wickes' balanced, omnichannel model and continued market share gains in what is proving to be a more stable underlying market than many might have feared.'He said the shares remain a 'very cheap' 10.6 times price to earnings ratio, with a free cashflow yield of 13.9%, and dividend yield of 7.5%.'A second quarter reappraisal of capital allocation could be an additional catalyst,' he said.

[brucethegoldfish] 24/3/2023 17:05

I’ve doubled my stake today as see this as a mid-term value play.

Results were solid, dividend yield good and strong net cash position.

Just needs time and positive market sentiment to return.

[creditcrunchies] 24/3/2023 16:51

Operating margin is what I meant. In 2019 it was 4.72% compared to the current rate is 5.81% in tough market conditions. They maintain that with £1.5 Billion + in revenues will be pretty impressive

[careful] 24/3/2023 12:52

Target price of 360p compared to todays price of 132p.
someone is trying to be funny.

[catabrit] 24/3/2023 11:44

These guys will re-rate meaningfully 18-months or so from now. Until then, they're correlated to the wider market malaise because they're deemed cyclical. It's a really nice business. In a former life I looked at a couple of sheds leased to these guys and was really impressed by how they ran their business. They were under the TP umbrella then.

[philanderer] 24/3/2023 11:39

Wickes cheap and at top end of guidance, says Liberum


Wickes (WIX) prelims have revealed its resilience and shows ‘the deep value on offer’ at the DIY and trade supplies retailer, says Liberum.

Analyst Wayne Brown retained his ‘buy’ recommendation and target price of 360p on the stock, which fell 1.6%, or 2.3p, to 142.7p on Thursday.

Full-year pre-tax profits of £75.4m is at ‘the top end of guidance and net cash of £100m is once again standout, allowing a flat dividend year-on-year,’ Brown said.

‘These results demonstrate the benefits of Wickes’ balanced, omnichannel model and continued market share gains in what is proving to be a more stable underlying market than many might have feared.’

He said the shares remain a ‘very cheap’ 10.6 times price to earnings ratio, with a free cashflow yield of 13.9%, and dividend yield of 7.5%.

‘A second quarter reappraisal of capital allocation could be an additional catalyst,’ he said.


citywire.com

[creditcrunchies] 24/3/2023 10:32

profit margin is trending up from 5 years to TTM. That's something I always keep an eye on.

[philanderer] 24/3/2023 00:39

Investors Chronicle:


Wickes hit by inflationary effects

There is a mixed outlook across the business as inflation persists


Management said that, although some DIY activities were brought forward during early phases of the pandemic, some larger projects linked to trade and DIFM channels may have been deferred.

Ultimately, however, the appetite for home improvements will be suppressed by inflationary effects, which will also eat into margins. Wickes’ hefty leasehold obligation also stands as a bear point, although, on balance, we think that a forward rating of six times consensus earnings and a prospective yield of 5.8 per cent mean the medium-term risks to profitability are overstated.

Buy.

full article:

[creditcrunchies] 24/3/2023 00:07

Nice dividend slightly lower than last but but very decent. Paul did a deep dive on the accounts on the SCVR daily round up. Bottom line safe. Sound finances, good yield, lowish PER gives it a thumbs up. Obviously I can't give the full report but all pretty positive especially once consumers get out of this slump on spending.

[philanderer] 23/3/2023 15:18

Exclusive: Wickes boss ‘curious’ about high street DIY store concept


Wickes chief executive David Wood says he is “curious” about the idea of high street DIY shops, a concept currently being trialled by competitors B&Q and Ikea.

The home and DIY boss told Retail Week that, although he had no current plans to open a high street location, he was interested in the concept and would not rule it out in the future.

[philanderer] 23/3/2023 14:41

Wickes profits plunge but DIY retailer achieves record sales on demand for energy efficiency products

++Falling core sales were offset by soaring demand in its fitting services division

++The Watford-based group's profits plunged by 46% due to IT separation costs

++Insulation and smart meters were in higher demand among Wickes customers

[philanderer] 23/3/2023 13:32

Totally forgot results were due today.

Results look fine. Happy to hold , with a good dividend.

[catabrit] 23/3/2023 13:26

The only thing stopping Wickes from being adequately valued is sentiment. This is a great little business and far too cheap. It will come good at some point.

[mngf] 23/3/2023 07:14

Results look good to me. Prediction: Up 2% at opening and then down 3% as usual

[spawny100] 15/3/2023 12:45

Someone keen to get out today with all those 10k sells.

[elongate] 03/2/2023 11:39

It cut the KGF price target to 260p from 275p, but lifted its price target on Wix to 160p from 150p.

[philanderer] 03/2/2023 11:03

Deutsche Bank cuts Wickes to 'hold' ('buy') - target 160 (150) pence

[riverman77] 01/2/2023 22:16

PE ratio of 5 doesn't look right either - certainly not on a forward looking basis.

[elongate] 01/2/2023 20:31

It compares favourably with KGF at 8x or thereabouts, and KGF are buying their own shares back.

[philanderer] 01/2/2023 15:04

For sure :-)

[prokartace] 01/2/2023 12:19

phil, I assume that the PE Ratio of 0.5x is mean't to be 5.0x

[philanderer] 01/2/2023 10:11

Wickes valuation ‘out of kilter’, says Liberum

Wickes (WIX) is ‘too cheap’ considering the future prospects of the DIY and building supplies retailer, says Liberum.

Analyst Wayne Brown retained his ‘buy’ recommendation and target price of 360p on the stock, which fell 4.4%, or 7p, to 151p yesterday.

The group delivered ‘robust’ performance in the fourth quarter boosted by home insulation sales amid the energy crisis, enabling management to reiterate full-year guidance for 2022.

‘Into full-year 2023, management is cautiously optimistic, although higher energy costs and bringing forward pay awards mean we expect consensus full-year 2023 profit before tax to lower by £2m-3m from the current £59m,’ Brown said.

‘Despite this, Wickes is delivering good underlying momentum, reflecting its balanced model and continued market share gains.’

The shares are up 31% since their September lows but Brown said they ‘still trade on a current full-year 2023 price-to-earnings ratio of 0.5x’.

‘A strong net cash balance sheet, 13% free cashflow yield when demerger costs fall away, and a dividend yield of 6.9% all highlight a valuation that is significantly out of kilter with what the group is delivering and its future prospects,’ he said.



citywire.com

[kibes] 31/1/2023 13:36

If pre-tax profit is in the range £72 - 76 million then eps should be around 26p. In which case a share price of 260p would be entirely reasonable. And a dividend above 10p/share. Looks more like a buy than a sell to me.