TRA - Turners Automotive Group

[winner (n)]

Turners F26 year started off with Shareholder Equity of $298m

During the year Profit was $46m. Other Comprehensive Income was $2m and they wrote of $7.5m of assets.

So overall Profit was $40m of which they paid out $28m in Dividends (61% of normalised Profit)

DRP and few other little things contributed $7m of new Capital

Overall Shareholder Equity increased by $19m or 6.5% (5.1% on a per share basis)

Really good news is that Turners Market Cap increased by $240m to $780m - n 44% increase

Price/ Book Value ratio has gone from 1.8 times to 2.5 times in last 12 months

Book Value per share up 5% and share price up 42% - phenomenal

Shareholders have done well from the market rerating

 

[777]

This from Simply Wall Street..
 
TRA
    
Turners Automotive Group
TRA
Last Price      NZ$8.40
My Fair Value      Select
 
New major risk - Earnings quality
The company has a high level of non-cash earnings.

Accrual ratio: 21%
This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management.

Currently, the following risks have been identified for the company:

Major Risks

Debt is not well covered by operating cash flow (currently running at an operating cash loss).
High level of non-cash earnings (21% accrual ratio).
Minor Risk

Paying a dividend despite having no free cash flows.
See company risks
 
 
 
Full year 2026 earnings: Revenues exceed analysts expectations while EPS lags behind
Full year 2026 results:

EPS: NZ$0.42 (down from NZ$0.43 in FY 2025).
Revenue: NZ$451.2m (up 9.3% from FY 2025).
Net income: NZ$38.2m (down 1.1% from FY 2025).
Profit margin: 8.5% (down from 9.3% in FY 2025). The decrease in margin was driven by higher expenses.
Revenue exceeded analyst estimates by 8.8%. Earnings per share (EPS) missed analyst estimates by 20%.

Revenue is forecast to grow 8.9% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the Specialty Retail industry in Oceania.

Over the last 3 years on average, earnings per share has increased by 6% per year but the company's share price has increased by 32% per year, which means it is tracking significantly ahead of earnings growth.

[Shareguy]

Another great result from a well managed company. Finance book the standout with Nim 5.7 percent. Forbar have it as underperform at $8.35 in latest note. It may well be fully valued but history shows they often out perform consensus.

Glad to be a holder.

[Basil]

Over the last 3 years on average, earnings per share has increased by 6% per year but the company's share price has increased by 32% per year, which means it is tracking significantly ahead of earnings growth.

Incorrect.  5 year EPS CAGR last time I looked was 12% and current year earnings growth has exceeded that.

[winner (n)]

Anybody read Grant Baker's book that has just been published

[Dolcile]

This from Simply Wall Street..
 
TRA
    
Turners Automotive Group
TRA
Last Price      NZ$8.40
My Fair Value      Select
 
New major risk - Earnings quality
The company has a high level of non-cash earnings.

Accrual ratio: 21%
This is considered a major risk. Non-cash earnings can arise from many different things. However, if a company consistently has a high level of non-cash earnings, it may be a sign that they are recognizing revenue from customers before the full value of the sales are received as cash or they are not depreciating the value of their assets appropriately. These are practices that inflate earnings, while not providing a similar increase to cash flows. Companies in some select industries naturally have a high level of non-cash earnings and it is not a major concern. However, in the worst case scenario it can be an early sign of performance manipulation by management.

Currently, the following risks have been identified for the company:

Major Risks

Debt is not well covered by operating cash flow (currently running at an operating cash loss).
High level of non-cash earnings (21% accrual ratio).
Minor Risk

Paying a dividend despite having no free cash flows.
See company risks
 
 
 
Full year 2026 earnings: Revenues exceed analysts expectations while EPS lags behind
Full year 2026 results:

EPS: NZ$0.42 (down from NZ$0.43 in FY 2025).
Revenue: NZ$451.2m (up 9.3% from FY 2025).
Net income: NZ$38.2m (down 1.1% from FY 2025).
Profit margin: 8.5% (down from 9.3% in FY 2025). The decrease in margin was driven by higher expenses.
Revenue exceeded analyst estimates by 8.8%. Earnings per share (EPS) missed analyst estimates by 20%.

Revenue is forecast to grow 8.9% p.a. on average during the next 3 years, compared to a 7.0% growth forecast for the Specialty Retail industry in Oceania.

Over the last 3 years on average, earnings per share has increased by 6% per year but the company's share price has increased by 32% per year, which means it is tracking significantly ahead of earnings growth.

What is this rubbish?  Operating cash flow is negative because it includes a huge increase in lending.

Would love to know how what these non cash earnings are?