Latest news with #EBOSGroup
Yahoo
5 days ago
- Business
- Yahoo
EBOS Group's (NZSE:EBO) five-year earnings growth trails the 17% YoY shareholder returns
Stock pickers are generally looking for stocks that will outperform the broader market. And in our experience, buying the right stocks can give your wealth a significant boost. For example, the EBOS Group Limited (NZSE:EBO) share price is up 89% in the last 5 years, clearly besting the market decline of around 6.1% (ignoring dividends). However, more recent returns haven't been as impressive as that, with the stock returning just 20% in the last year, including dividends. The past week has proven to be lucrative for EBOS Group investors, so let's see if fundamentals drove the company's five-year performance. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). Over half a decade, EBOS Group managed to grow its earnings per share at 4.6% a year. This EPS growth is lower than the 14% average annual increase in the share price. This suggests that market participants hold the company in higher regard, these days. That's not necessarily surprising considering the five-year track record of earnings growth. You can see below how EPS has changed over time (discover the exact values by clicking on the image). Before buying or selling a stock, we always recommend a close examination of historic growth trends, available here. What About Dividends? As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, EBOS Group's TSR for the last 5 years was 120%, which exceeds the share price return mentioned earlier. The dividends paid by the company have thusly boosted the total shareholder return. A Different Perspective It's nice to see that EBOS Group shareholders have received a total shareholder return of 20% over the last year. Of course, that includes the dividend. Since the one-year TSR is better than the five-year TSR (the latter coming in at 17% per year), it would seem that the stock's performance has improved in recent times. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider for instance, the ever-present spectre of investment risk. We've identified 1 warning sign with EBOS Group , and understanding them should be part of your investment process. We will like EBOS Group better if we see some big insider buys. While we wait, check out this free list of undervalued stocks (mostly small caps) with considerable, recent, insider buying. Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on New Zealander exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
05-07-2025
- Business
- Yahoo
An Intrinsic Calculation For EBOS Group Limited (NZSE:EBO) Suggests It's 23% Undervalued
Using the 2 Stage Free Cash Flow to Equity, EBOS Group fair value estimate is NZ$51.07 Current share price of NZ$39.50 suggests EBOS Group is potentially 23% undervalued Our fair value estimate is 28% higher than EBOS Group's analyst price target of AU$39.95 In this article we are going to estimate the intrinsic value of EBOS Group Limited (NZSE:EBO) by taking the expected future cash flows and discounting them to today's value. This will be done using the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. Remember though, that there are many ways to estimate a company's value, and a DCF is just one method. Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model. We've found 21 US stocks that are forecast to pay a dividend yield of over 6% next year. See the full list for free. We use what is known as a 2-stage model, which simply means we have two different periods of growth rates for the company's cash flows. Generally the first stage is higher growth, and the second stage is a lower growth phase. In the first stage we need to estimate the cash flows to the business over the next ten years. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we need to discount the sum of these future cash flows to arrive at a present value estimate: 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Levered FCF (A$, Millions) AU$256.7m AU$327.1m AU$318.6m AU$345.3m AU$366.7m AU$386.3m AU$404.6m AU$422.2m AU$439.2m AU$456.1m Growth Rate Estimate Source Analyst x2 Analyst x2 Analyst x1 Analyst x1 Est @ 6.20% Est @ 5.35% Est @ 4.75% Est @ 4.33% Est @ 4.04% Est @ 3.84% Present Value (A$, Millions) Discounted @ 6.8% AU$240 AU$287 AU$261 AU$265 AU$264 AU$260 AU$255 AU$249 AU$242 AU$236 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = AU$2.6b After calculating the present value of future cash flows in the initial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (3.4%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 6.8%. Terminal Value (TV)= FCF2035 × (1 + g) ÷ (r – g) = AU$456m× (1 + 3.4%) ÷ (6.8%– 3.4%) = AU$14b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= AU$14b÷ ( 1 + 6.8%)10= AU$7.0b The total value is the sum of cash flows for the next ten years plus the discounted terminal value, which results in the Total Equity Value, which in this case is AU$9.6b. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of NZ$39.5, the company appears a touch undervalued at a 23% discount to where the stock price trades currently. The assumptions in any calculation have a big impact on the valuation, so it is better to view this as a rough estimate, not precise down to the last cent. The calculation above is very dependent on two assumptions. The first is the discount rate and the other is the cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at EBOS Group as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 6.8%, which is based on a levered beta of 0.800. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for EBOS Group Strength Debt is well covered by earnings and cashflows. Dividends are covered by earnings and cash flows. Weakness Earnings declined over the past year. Dividend is low compared to the top 25% of dividend payers in the Healthcare market. Opportunity Annual revenue is forecast to grow faster than the New Zealander market. Trading below our estimate of fair value by more than 20%. Threat Annual earnings are forecast to grow slower than the New Zealander market. Valuation is only one side of the coin in terms of building your investment thesis, and it is only one of many factors that you need to assess for a company. DCF models are not the be-all and end-all of investment valuation. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For instance, if the terminal value growth rate is adjusted slightly, it can dramatically alter the overall result. Why is the intrinsic value higher than the current share price? For EBOS Group, we've put together three fundamental items you should further research: Risks: We feel that you should assess the 1 warning sign for EBOS Group we've flagged before making an investment in the company. Future Earnings: How does EBO's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. Simply Wall St updates its DCF calculation for every New Zealander stock every day, so if you want to find the intrinsic value of any other stock just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. 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Reuters
28-05-2025
- Business
- Reuters
EBOS Group's major shareholder Sybos launches NZ$949 million selldown, term sheet shows
SYDNEY, May 28 (Reuters) - EBOS Group's ( opens new tab, major shareholder Sybos is selling NZ$949 million ($566.74 million) worth of shares in the New Zealand-based medical equipment manufacturer, according to a term sheet by Reuters. The investor is selling 26.74 million shares at NZ$35.50 each, an 8.9% discount to the stock's closing price on Wednesday, the term sheet showed. EBOS declined to comment. The sale represents about 13.2% of EBOS stock and Sybos will retain a 4.9% holding once the block trade is complete, the term sheet showed. Investment bank UBS is leading the deal, according to the term sheet. ($1 = 1.6745 New Zealand dollars)
Yahoo
23-02-2025
- Business
- Yahoo
EBOS Group (NZSE:EBO) Has Announced A Dividend Of A$0.5951
The board of EBOS Group Limited (NZSE:EBO) has announced that it will pay a dividend of A$0.5951 per share on the 21st of March. Based on this payment, the dividend yield on the company's stock will be 3.2%, which is an attractive boost to shareholder returns. View our latest analysis for EBOS Group Impressive dividend yields are good, but this doesn't matter much if the payments can't be sustained. Prior to this announcement, EBOS Group's dividend made up quite a large proportion of earnings but only 70% of free cash flows. This leaves plenty of cash for reinvestment into the business. Over the next year, EPS is forecast to expand by 34.2%. Assuming the dividend continues along recent trends, our estimates say the payout ratio could reach 80% - on the higher side, but we wouldn't necessarily say this is unsustainable. The company has an extended history of paying stable dividends. The dividend has gone from an annual total of A$0.363 in 2015 to the most recent total annual payment of A$1.14. This works out to be a compound annual growth rate (CAGR) of approximately 12% a year over that time. So, dividends have been growing pretty quickly, and even more impressively, they haven't experienced any notable falls during this period. Some investors will be chomping at the bit to buy some of the company's stock based on its dividend history. It's encouraging to see that EBOS Group has been growing its earnings per share at 5.5% a year over the past five years. Past earnings growth has been decent, but unless this is one of those rare businesses that can grow without additional capital investment or marketing spend, we'd generally expect the higher payout ratio to limit its future growth prospects. Overall, we don't think this company makes a great dividend stock, even though the dividend wasn't cut this year. The company has been bring in plenty of cash to cover the dividend, but we don't necessarily think that makes it a great dividend stock. We would be a touch cautious of relying on this stock primarily for the dividend income. Market movements attest to how highly valued a consistent dividend policy is compared to one which is more unpredictable. However, there are other things to consider for investors when analysing stock performance. For instance, we've picked out 1 warning sign for EBOS Group that investors should take into consideration. Is EBOS Group not quite the opportunity you were looking for? Why not check out our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Sign in to access your portfolio
Yahoo
13-02-2025
- Business
- Yahoo
Investing in EBOS Group (NZSE:EBO) five years ago would have delivered you a 104% gain
When we invest, we're generally looking for stocks that outperform the market average. Buying under-rated businesses is one path to excess returns. For example, long term EBOS Group Limited (NZSE:EBO) shareholders have enjoyed a 75% share price rise over the last half decade, well in excess of the market decline of around 12% (not including dividends). On the other hand, the more recent gains haven't been so impressive, with shareholders gaining just 19%, including dividends. Now it's worth having a look at the company's fundamentals too, because that will help us determine if the long term shareholder return has matched the performance of the underlying business. Check out our latest analysis for EBOS Group In his essay The Superinvestors of Graham-and-Doddsville Warren Buffett described how share prices do not always rationally reflect the value of a business. One way to examine how market sentiment has changed over time is to look at the interaction between a company's share price and its earnings per share (EPS). Over half a decade, EBOS Group managed to grow its earnings per share at 9.2% a year. This EPS growth is slower than the share price growth of 12% per year, over the same period. This suggests that market participants hold the company in higher regard, these days. And that's hardly shocking given the track record of growth. The graphic below depicts how EPS has changed over time (unveil the exact values by clicking on the image). This free interactive report on EBOS Group's earnings, revenue and cash flow is a great place to start, if you want to investigate the stock further. As well as measuring the share price return, investors should also consider the total shareholder return (TSR). Whereas the share price return only reflects the change in the share price, the TSR includes the value of dividends (assuming they were reinvested) and the benefit of any discounted capital raising or spin-off. It's fair to say that the TSR gives a more complete picture for stocks that pay a dividend. As it happens, EBOS Group's TSR for the last 5 years was 104%, which exceeds the share price return mentioned earlier. This is largely a result of its dividend payments! It's nice to see that EBOS Group shareholders have received a total shareholder return of 19% over the last year. That's including the dividend. That gain is better than the annual TSR over five years, which is 15%. Therefore it seems like sentiment around the company has been positive lately. Given the share price momentum remains strong, it might be worth taking a closer look at the stock, lest you miss an opportunity. While it is well worth considering the different impacts that market conditions can have on the share price, there are other factors that are even more important. Consider risks, for instance. Every company has them, and we've spotted 1 warning sign for EBOS Group you should know about. If you like to buy stocks alongside management, then you might just love this free list of companies. (Hint: many of them are unnoticed AND have attractive valuation). Please note, the market returns quoted in this article reflect the market weighted average returns of stocks that currently trade on New Zealander exchanges. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
