TRA - Turners Automotive Group

[Basil]

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

No interest in selling from me either.  Without any doubt, it's one of the very best managed companies on the NZX

[Dolcile]

I'm holding firm.   It's a bond like safety with the upside of a growth company. 

[Waltzing]

green than... GREEN!!!

[Basil]

I'm holding firm.   It's a bond like safety with the upside of a growth company. 

Agree 100%.  Not many companies pay quarterly divvies.  Not all companies pay fully imputed divvies. Not many companies have a dividend reinvestment plan. 
All these factors combined make a real difference with compounding 4 times a year and raises the annual effective dividend rate.

For example, looking ahead to next year with Forsyth Barr forecasting 36 cps in FY27 fully imputed divvies, = 50 cps gross (36 / 0.72), on $6.70 that gives an apparent gross yield of 50/670 = 7.46% which is great with growth coming in the years thereafter but, (and please excuse the geek accountant in me number crunching everything to the finest detail), factor in the quarterly compounding and 2% DRP discount the effective gross annual rate is actually 7.78%

Not many low risk bonds paying that      In my books that means you're being paid very well to hold and enjoy all the growth in the years ahead.
The Title of Forsyth Barr's $7.30 valuation research is "High Octane"  I think that sums it up very well.

[Dolcile]

Best peer group comparison is Briscoes with as mentioned, declining earnings in recent years and very limited apparent growth ahead so really does deserve to be on a much lower PE than Turner's but their PE is nearly 18 and tangible book value per share off Jarden website is only $1.34 but their share price is north of $4.90.  Also well worth noting Rod Duke's age and that Todd and Aaron have a lot more high octane gas in the tank than he does in terms of their working lives ahead of them.

Briscoes now on a PE of 22 - wow.   

[Basil]

Its just been included in the NZX50 with a lot of resulting buying pressure.  22 x ~ 50 cents EPS next year = $11 for TRA !  Would make a heck of a lot more sense at that level even than Briscoes where it finished yesterday because TRA is growing its EPS at 10% CAGR whereas Briscoes is definitely not !

[Minimoke]

A new Turners site is nearing completion in Christchurch. On Northern Motorway offramp by the airport

I reckon a great location for tourists. Hop off your plane. Buy a car. Travel the south island. Sell your car back to tuners and catch a return flight home.

[winner (n)]

Marketing guru once said "Creative without strategy is called 'art' — creative with strategy is called 'advertising.'"

We know where Tina fits in eh

[Basil]

Celebrating a decade of growth.  Annual report just released and hot off the press.  https://api.nzx.com/public/announcement/453872/attachment/446187/453872-446187.pdf

[The Kid]

Exec Talks Series - Ep 2 | Todd Hunter - Driving success: Turners defying economic headwinds - From Craigs Investment Partners


https://youtu.be/EMzB93eWsJQ?si=rna3_v56_yyP927e

[Dolcile]

Thanks for posting that link.

There were a couple of key takeaways for me:

Currently we have 21 car branches, this can certainly increase to 30 (potentially more). And that gives them 5-7 years of retail growth.

The branch network is their single biggest competitive advantage in sourcing cars - people will travel the country to buy the right car, but when selling you want to go down the road.

They think of Auto as rolling out a supermarket strategy for used cars.

There are 4.5m registered cars in NZ and 1.5m of them are changing hands every year.

[Waltzing]

by the Airport locations where possible will be for the next pandemic....

buy as you get off the plane...with america now out of the WHO.... it cant be far away and you wont the warning this time of  'Its not a global pandemic'... at least time you got a definite NO... this time... not even that... you wont know its here or anywhere... to many bombs going off...

we are in the lap of the gods...

[Stockgathering]

Celebrating a decade of growth.  Annual report just released and hot off the press.  https://api.nzx.com/public/announcement/453872/attachment/446187/453872-446187.pdf

Basil it seems like the cash flow statement is not quite right. The dividend according to the cash flow statement dropped to less than $14m from nearly $22m the previous year.

[Dolcile]

Basil it seems like the cash flow statement is not quite right. The dividend according to the cash flow statement dropped to less than $14m from nearly $22m the previous year.

I was wondering the same, but it seems that the dividend was paid in April 2025 this year, whereas last year it was March 2024.  So just timing.

[Stockgathering]

Your right Dolcile, that will be it.