TRA - Turners Automotive Group

[Waltzing]

what can you say... its almost defines the nation...did they include a surf board and park up on the beach? next time.. next time...

well even after the rain its a long long summer in the BOP...

[Waltzing]

Looks like China is about to enter EV Crisis...

Price discounting by 35 percent off BYD models...

EV share price collapse..?


with global trade growth now focus on India and southern Asia.. NZ may not look like such a beached ship after all..

This stock may well be the most defensive stock along with gen...

[Basil]

There should be a really happy vibe at this years annual meeting !

[Dolcile]

$6.59 close.   Outstanding

[Basil]

Dealer to public used car sales up a whopping 11% in May.  Strongest month in ages.  Turners market share gains will be on top of that.  No matter what's going on in the world, Turners does great business.
https://www.turners.co.nz/globalassets/terms-and-conditions/market-report-cars---May-2025.pdf

[winner (n)]

That's good news basil eh

Suppose a bit soon for a profit upgrade but they'll have to come clean sometime before ASM

What was expectations again?

[Waltzing]

increased DIV or at least hopefully staying with 9...

[Basil]

Suppose a bit soon for a profit upgrade but they'll have to come clean sometime before ASM
What was expectations again?

Too early in the year for any guidance but they did seem very confident about prospects during the call and mentioned they are ahead of plan for their FY28 NPBT target of $65m, but we knew that already eh.   Forsyth Barr has them exceeding FY28 guidance in FY27.
Should be lots of good positive vibes at the annual meeting and as you suggest, maybe some progress update. 
I'm just going to sit back and enjoy the decade long 10% CAGR in EPS and 14% CAGR in dividends and let that ongoing strong growth flow through to the share price in the years ahead.   The shares are a compelling long term hold in my opinion.

[Waltzing]

Div to increase to 10?

[Basil]

Forsyth Barr's forecast EPS and DPS in the years ahead.  At $6.56 PE and Gross yield are as follows
FY26 Forecast EPS 48.0 cps, DPS 32.5 cps  PE 13.7 Yield 6.9%
FY27 Forecast EPS 52.9 cps, DPS 36.0 cps  PE 12.4 Yield 7.6%
FY28 Forecast EPS 57.4 cps, DPS 39.5 cps  PE 11.4 Yield 8.4%

[Dolcile]

Still very compelling value.  Not sure i could ever invest in fixed interest bonds when we have a stock like Turners that can weather such economic conditions. 

[Waltzing]

if this is what this stock does when the economy is on it knees... oh no it still crawling apparently.. does that mean one knee up at a time or is that belly flopping...

https://www.interest.co.nz/economy/133772/economy-may-be-crawling-little-while-longer-while-previous-house-price-forecasts

maybe thats the next gig for the adverts some hip hopping or was that already in the add?

dont watch NZ TV... saw the Add on you tube somewhere...

no green shoots apparently... no but honestly with a late autumn the grass is green this time of year.. fabulous.. must hard to paint...

https://www.christies.com/en/stories/david-hockney-yorkshire-landscapes-7d568b3e0d3046e0a54c10dd4927062b

[Pierre]

TRA closed today at $6.70. I think this is the ATH?

[Basil]

Yes it is.  A few comparative companies Forsyth Barr use in their $7.30 valuation for TRA and forward PE for them include
Eagers Automotive PE 16.9
Peter Warren Automotive PE 15.5
Turners PE 13.2, (when the valuation was done on 27 May and share price was $6.20)
Turners trades cum a 9 cent divvy due next month.  Why sell when its still relatively cheap compared to its peers and there's likely 10% CAGR in EPS and DPS for the foreseeable future ?

Looking ahead to this time next year in mid 2026, on prospective FY27 EPS per Forbar's estimate of 52.9 cps a PE of 16.9 times that is $8.94.  Might happen, we'll see.

[Pierre]

Why sell when its still relatively cheap compared to its peers and there's likely 10% CAGR in EPS and DPS for the foreseeable future ?

Looking ahead to next year on prospective FY27 EPS per Forbar's estimate of 52.9 cps a PE of 16.9 times that is $8.94.

I have no intention of selling - and recently bought more.