Are these four stocks at bargain prices?

 
JB Hi-Fi Limited
 

JBH Details

Strengthening balance sheet:JB Hi-Fi Limited (ASX: JBH) completed retail entitlement offer and raised $135 million. Moreover, JBH had already raised $259 million through the Institutional Entitlement Offer. The group recently acquired 100% of The Good Guys for the total cash consideration of $870 million. This acquisition is expected to strengthen JBH’s presence in the home appliances market and expected to deliver net synergies of $15 - 20 million per annum to the combined business after a three-year integration period, excluding one-off implementation costs. The group lately came out with revised securities trading policy. JBH’s FY16 performance witnessed 8.3% total sales growth and gross profit was up 8.4%. Sales for 1Q FY17 were as per expectation with total sales up 12.4%. Meanwhile, JBH stock has risen over 16.7% in the last six months as on December 09, 2016. We give a “Hold” recommendation on the stock at the current price of $26.21
 

JBH Daily Chart (Source: Thomson Reuters)
 
National Australia Bank Ltd


NAB Details

Boosting capital position: National Australia Bank Ltd (ASX: NAB) reported the statutory net profit of $352 million in FY 16, which is a fall of 94.4% due to the loss on sale for both CYBG PLC (CYBG) and 80% of NAB Wealth’s life insurance business. Excluding the discontinued operations, the statutory net profit decreased 5.6% to $6.42 billion. Moreover, NAB has well managed the group operating expenses in FY 16 with productivity savings reported of $187m (2H16 increase of $98m).
 

FY 16 Financial Performance (Source: Company Reports)
 
NAB is targeting ongoing annual productivity savings of greater than $200 million pa and some being reinvested. Further, NAB has sound asset quality of $100 million top up to collective provision overlay. NAB also has strong capital position with Common Equity Tier 1 ratio at 9.8%, which is above the target range of 8.75% – 9.25%. In addition, NAB has reported a 4.2% growth in the cash earnings of $6,483 million in FY 16. Trading at a solid dividend yield, we give a “Buy” recommendation on the stock at the current price of $29.70
 

NAB Daily Chart (Source: Thomson Reuters)
 
Monash IVF Group Ltd


MVF Details

H1FY17 NPAT expected to grow 7% despite subdued industry: Monash IVF Group Ltd (ASX: MVF) in FY 16 has reported a 25.3% growth in the revenues to $156.6m and a 34.6% growth in the net profit after tax (NPAT) to $28.8 million. However, in the first quarter of FY17, MVF has experienced softening in Assisted Reproductive Services (ARS) growth rates and a slight decline in the group’s revenues and total Patient Treatments for the quarter. On the other hand, MVF is still expecting the reported NPAT to grow 7% for H1FY17 against earlier corresponding period as a result of cost control and improved capital management, despite the fact that the Australian industry declined in Fresh IVF cycles of 3.5% in Q1FY17.
 

Patient Treatment Growth Rates (Source: Company Reports)
 
Total key market patient treatments rose by 1% in Q1 FY17 over prior corresponding period (pcp). On the other hand, total Australian IVF Patient Treatment market share has reduced to 23.8% from 24.5% in pcp. MVF stock has a decent dividend yield and has surged 21.21% this year to date (as at December 09, 2016), and we give a “Hold” recommendation at the current price of $1.97
 

MVF Daily Chart (Source: Thomson Reuters)
 
Sydney Airport Holdings Ltd


SYD Details

Concerns over domestic growth: Sydney Airport Holdings Ltd (ASX: SYD) in October, posted an 8.3% growth in the international traffic as compared to the prior corresponding period (pcp), and overall, year to date growth is 9.3% in the international traffic. The support came in from the 6.4% Australian nationality growth. But, the domestic passenger growth is only 1.4% above pcp for the month and the same grew 4.2% for the year to date. Further, Air China’s new service from Sydney to Chengdu started in November 2016 and added 74,000 seats annually. As a result, SYD stock has fallen 6.13% in the last three months (as on December 09, 2016).
 

Sydney Airport Traffic Performance for October 2016 (Source: Company Reports)
 
SYD is paying 16 cents per stapled security to the shareholders for which the record date is 30^th December, 2016 and the payment date is 14^th February 2017 while the securities trade ex-entitlement on 29^th December 2016. However, the stock is trading at an unreasonable P/E. We give an “Expensive” recommendation on the stock at the current price of $6.40
 

SYD Daily Chart (Source: Thomson Reuters)

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