Founded: 1895, ASX code: ANC, homepage: www.anguscoote.com.au
Overview:
Angus & Coote is dominant Australian jewellery retailer with approximately 15% market share in its industry. It consists of over 280 stores operating in three divisions: A&C division (Angus&Coote, Amies, Dunklings and Edments stores), Goldmark division and J’s Room Division.
At the time of writing, Angus & Coote is in process of being taken over by another major jewellery retailer, Prouds.
Analysis of latest annual report (July 2006):
- Market Cap: Depending on the daily stock price the market cap of this company is about $72mil in about 12mil of outstanding shares.
- Shareholders Equity: $46.4mil making the stock’s book value approx. $3.87 per share (-23% growth on year ending July 2005). From that about $16.9mil. ($1.40 per share) is available working capital.
- Earnings per share: $-0.32 making the average EPS growth in last 3 years about -41%
- Return on Equity: -8.1%, averaging around 5.7% in last 3 years
- Balance Sheet: Working capital of $16.9mil versus total debt of $33.4mil
Sharemarket’s view:
Average ANC Price to Earnings ratio of 11 suggests the share price around $5.94 ($0.54 EPS x 11 P/E). This calculations is based on 2005 EPS as company had negative EPS in 2006!
VALUE STOCK:
Return: The January 2007 share price of $6.3 indicates that this company is trading at about 38% premium to its 2006 book value and at about 77% premium to its current working capital.
PROS AND CONS:
+++ Long established business with high levels of management ownership
— Deteriorating in value over the last two years
— Increasing levels of debt
— Uncertainties coming from recent takeover
Further information about Australian Stock Exchange www.asx.com.au
Entries (RSS)