TRA - Turners Automotive Group

[Dolcile]

Pretty sure you could fix the problems with the sales depth pretty easily. Just put a proper offer into the market. I would probably start thinking about selling my shares around $9 ... (obviously given the current conditions).

lol.   I've been buying for a while and it has been nice picking up shares sub $6

[winner (n)]

Wilson Asset Management do rave about TRA ....echos of Basil's rave

They like NZ stocks and TRA seems one of the best

https://businessdesk.co.nz/article/economy/nzme-mainfreight-summerset-why-this-australian-investor-likes-nz-listed-companies

[Basil]

He said Turners Automotive had done an exceptional job of managing through the economic cycle, and its strong results showed the business's diversification.

[Red Baron]

Wilson Asset Management do rave about TRA ....echos of Basil's rave

They like NZ stocks and TRA seems one of the best

Vilson eh?   Vell of course he likes Turners.   Ze more cars zold.  Ze more customers vor heez confounded round town car parking lots!

RB

[Basil]

Tina's after the simple life.  https://www.nzherald.co.nz/talanoa/why-tina-from-turners-is-leaving-new-zealand-for-life-in-samoa/5TURXFRWANANFPKBKGTXNXNLRA/
Great work that as I understand it, Todd was very smart to lock her in on a long term key person marketing contract.
Extract from article speaks for itself.
"Leo'o Olo remains open to bookings and intends to travel back for work when required. But returning to New Zealand permanently is unlikely".

[The Kid]

Yes, Todd just confirmed as much on the other site.

All the best to her.

[Basil]

Good stuff.  Reposted below.

Todd Hunter Whilst Bubba is moving to Samoa she is still available for jobs (like ours) in NZ. Luckily there are still planes flying back and forward! There are also recording studios we can use in Samoa to do audio work if we need the song updated for example. We have recorded a huge amount of video content in the last 4 weeks, which we think is enough to cover us for at least another 4 years. This is how long the previous ads have run for in case you were wondering. We make sure we get the most from this investment!
And well spotted by Perky...she is actually holding a Samoan flag in front of the Tongan flag car!
I do like the headline of the NZ Herald article..."Tina from Turners" is moving to Samoa, not Bubba!

I see compelling value here and ongoing solid growth in the years ahead so I bought a few more this morning.

[Waltzing]

they will be opening up in fiji before you know it... and other island... not sure what they will be selling... but hey they will probably think of something....

[winner (n)]

Turners Auckland sales might be taking a hit with millions watching this NZ Cheap Cars campaign

https://www.stuff.co.nz/nz-news/360690097/watch-kiwi-ad-cheap-used-cars-has-over-2m-views-tiktok

[Waltzing]

oh dear is that why the share priced failed to move on up...

truly pathetic if that is the state of the nation....

now for a proper car review... much more interesting than the brain less viewers on TT..

https://www.youtube.com/watch?v=o0WR6rYxUaw

[Basil]

Forsyth Barr released a 23 page in depth report on TRA on 27 March.  An excellent bit of work that really drilled down into every aspect of the business.

They are forecasting eps of 43.3 cps for FY25 rising to 47.6 and 51 cps in the following two years.
Dividends 28 cps for FY25 rising to 30.5 cps and 33.5 cps
Price target $7.05 Rating Overweight.

I think their targets are conservative and will be subject to probably upgrade after the forthcoming report on 26 May.  On their numbers TRA are on a current FY26 year PE of 12.8 and gross yield of 6.95% @ $6.09.   Very attractive metrics given their track record and future prospects for growth.

[Waltzing]

parfait!

[Dolcile]

Looking forward to the annual result presentation tomorrow - hopefully Todd delivers above guidance. 

[Basil]

Results are out and growth is very strong.  The business has performed exceptionally well with substantial growth in eps and dividends in a very weak economy.  Final divvy of 9 cps substantially exceeded my expectations.

Key Financial Highlights:
● Revenue $414.2m -1%
● EBIT 1 $62.3m +6%
● NPBT $54.3m +10%
● NPAT $38.6m +17%
● Earnings per share (EPS) 43.3 cps +17%
● Final dividend declared of 9.0 cps
● Full year dividend of 29 cps +14%

More here https://api.nzx.com/public/announcement/452221/attachment/444157/452221-444157.pdf

I will posts further thoughts later after reading through all the material and listening to the call.
CAGR in dividends of 14% over the last 11 years !

[Dolcile]

At a very high-level look that is a lovely result!

With Auto Retail now firmly back in
growth mode, we enter FY26 with strong momentum across all segments. We are on track to
reach our FY28 targets earlier than expected. Our Tina brand refresh and new campaign
launch reflect continued investment in a proven formula that is delivering strongly."

FY28 target going to be earlier than expected!