Acrow Formwork And Construction

[Hectorplains]

ACF gets a bit of air time over on the dark site.  Today's announcement was positive and looking forward there should be plenty more to come.  Some grumblings about debt and cash flow.  The first is a non starter for concern - plenty of head room.  The second is more relevant but only if growth goes tits up.  Stock price has been range bound for eons...that might be due to change.  Exponential growth plus a yield.  What's not to like? 

[Hectorplains]

ACF gets a bit of air time over on the dark site.  Today's announcement was positive and looking forward there should be plenty more to come.  Some grumblings about debt and cash flow.  The first is a non starter for concern - plenty of head room.  The second is more relevant but only if growth goes tits up.  Stock price has been range bound for eons...that might be due to change.  Exponential growth plus a yield.  What's not to like? 

Up 4% today on good volume,  new high.  Hopefully an updated guidance announcement soon too.
https://youtu.be/gXXYSHsFrxY

[Whome]

ACF sp has increased steadily from 50c over the period from last Nov to currently sit at 70c. Earnings update due 23 Feb. Thanks Percy/ Lorraina for the heads up on this last year.

[Hectorplains]

ACF sp has increased steadily from 50c over the period from last Nov to currently sit at 70c. Earnings update due 23 Feb. Thanks Percy/ Lorraina for the heads up on this last year.

There first real false step getting pinged in today's announcement for "speculative trading" in ACF shares by an insider.  A poor look that but earnings update should be pleasing.

[lorraina]

Not a good look.

[Whome]

No not a good look. Certainly need to tighten the laces internally.

[lorraina]

Another cracker result
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02634658-6A1137543?access_token=83ff96335c2d45a094df02a206a39ff4.

And their presentation.
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02634666-6A1137550?access_token=83ff96335c2d45a094df02a206a39ff4

[lorraina]

First half results for Acrow Formwork and Construction Services outdid Shaw and Partners expectations on every metric and management upgraded FY23 earnings guidance.

The analyst observes a stronger growth trajectory from operating leverage and increasing scale. Sales increased by 34% and the composition of those sales were considered attractive.

Sales for hire, product sales and cartage grew versus the previous corresponding period by 25%, 41% and 120%, respectively, compared to the broker's estimates for 15%, 11% and 3%, respectively.

Shaw and Partners maintains its Buy rating given the company trades at a significant multiple discount to listed contracting peers. The target rises to $1.00 from 85c.

This report was published on February 24, 2023.

Target price is $1.00 Current Price is $0.73 Difference: $0.265
If ACF meets the Shaw and Partners target it will return approximately 36% (excluding dividends, fees and charges).
The company's fiscal year ends in June.

Forecast for FY23:

Shaw and Partners forecasts a full year FY23 dividend of 3.70 cents and EPS of 9.80 cents.
At the last closing share price the estimated dividend yield is 5.03%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 7.50.

Forecast for FY24:

Shaw and Partners forecasts a full year FY24 dividend of 5.00 cents and EPS of 11.40 cents.
At the last closing share price the estimated dividend yield is 6.80%.
At the last closing share price the stock's estimated Price to Earnings Ratio (PER) is 6.45.

Market Sentiment: 1.0
All consensus data are updated until yesterday. FNArena's consensus calculations require a minimum of three sources

[lorraina]

..................2022..........2023.............2024
PE................10.57..........7.5.............6.45
eps................7.38..........9.8.............11.4
eps growth................32.79%...........16.32%.
dps cents..........2,7c..........3.7c.............5c
dps growth...............37%..............35%
The eps growth of 32.79% is over three times current PE .
PEG ratio .322......s

[lorraina]

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02651083-6A1143860?access_token=83ff96335c2d45a094df02a206a39ff4

A positive [bolt on] acquisition using cash and debt.
Trading momentum continues.

[Hectorplains]

https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02651083-6A1143860?access_token=83ff96335c2d45a094df02a206a39ff4

A positive [bolt on] acquisition using cash and debt.
Trading momentum continues.

Looks positive.  The announcement is a bit light on financial specifics though. 

"has the potential to make a material positive contribution to the Company's FY 24 earnings"

"bodes well for the prospects of another year of growth in FY24"

[lorraina]

Great guidance.
Enjoy.
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02656648-6A1146068?access_token=83ff96335c2d45a094df02a206a39ff4

[Whome]

Great guidance.
Enjoy.
https://cdn-api.markitdigital.com/apiman-gateway/ASX/asx-research/1.0/file/2924-02656648-6A1146068?access_token=83ff96335c2d45a094df02a206a39ff4

Certainly have enjoyed +31% lift in sp from Dec'22 to Mar'23 to ~77cps, now over 80cps as of Friday. Their acquisitions to date have broadened the company skill sets around what they bring to their large project contracts like the Snowy River upgrades. Long may they continue their run of success. Their TA growth ladder is remarkable given such uncertainty elsewhere in the global market.

[Hectorplains]

Certainly have enjoyed +31% lift in sp from Dec'22 to Mar'23 to ~77cps, now over 80cps as of Friday. Their acquisitions to date have broadened the company skill sets around what they bring to their large project contracts like the Snowy River upgrades. Long may they continue their run of success. Their TA growth ladder is remarkable given such uncertainty elsewhere in the global market.

These guys have become synonymous with the words, "guidance upgrade." Even with the steady cps rise,  it still seems to be 20% undervalued. 

[lorraina]

ACF finished at 88 cents xdiv this afternoon.
I have drp so look forward to seeing how many I get [in a month's time].