ARB Corporation Ltd
ARB Dividend Details
Strong FY15 performance boosted the stock: ARB Corporation Limited (ASX: ARB) shares surged over 14.53% (as of November 30, 2015) in the last three months driven by its ongoing strong FY15 performance, in spite of challenging market conditions. The group reported a sales increase of 10.7% year on year (yoy) to $329.8 million in fiscal year of 2015, despite decreasing demand from its mining customers. The group delivered growth across all of its segments with Australian aftermarket, export and original equipment revenues improving by 7.6%, 17.8% and 18.5% respectively, on a year over year basis. Management estimates a better outlook and is expanding its segments by launching new products and enhancing distribution. On the other hand, falling Australian dollar impacted its net profit after tax which rose only 3.6% yoy despite such solid revenues. Ongoing Australian dollar impact coupled with decrease in investments by mining customers would continue to pose pressure to its growth momentum in the coming periods.
Sales Revenue and Net profit after tax performance over the years (Source: Company Reports)
Moreover the recent correction in the stock placed ARB at very expensive valuations with the stock trading at a relatively higher P/E of about 27x in comparison to its peers and close to its 52-week high price, while ARB has a low dividend yield of about 1.9%.
We give an “EXPENSIVE” recommendation on the stock at the current price, and would review the stock at a later date.
ARB Daily Chart (Source: Thomson Reuters)
Premier Investments Ltd
PMV Dividend Details
Solid bottom line growth: Premier Investments Limited (ASX: PMV) shares surged over 11.94% in the last three months (as at November 30, 2015) as the group reported solid premium retail performance and net profit after tax growth. PMV’s underlying profit before tax surged 11.9% yoy to $118.6 million while net profit after tax increased by 20.7% yoy to $88.1 million during FY15. Premier Retail revenues improved across all of its brands, due to which the segment reported a 6.4% yoy increase to $945.7 million, while second half of 2015 performed even better delivering an 8.3% yoy increase. Online retail sales surged by 31% yoy during the period. As per the brand performance, Peter Alexander and Smiggle sales improved by 14.9% and 26% respectively, on a yoy basis, and PMV is expanding its Smiggle UK stores by opening more 16 stores by this year end, as compared to 24 stores as of FY15.
Premium retail performance (Source: Company Reports)
On the other hand, the weak consumer sentiment might continue to pressurize its top line in the coming periods. We believe Premier Investments ltd.’s stock is also trading at a relatively higher P/E of about 25x against its peers and accordingly give an “EXPENSIVE” recommendation on the stock at the current price, and would review the stock at a later date.
PMV Daily Chart (Source: Thomson Reuters)
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