Latest news with #SouthernCrossElectricalEngineering
Yahoo
2 days ago
- Business
- Yahoo
ASX Penny Stocks Spotlight: Emerald Resources And Two More To Consider
As Australian shares aim for a modest rise, the market remains influenced by global events, including record highs in U.S. indices and geopolitical tensions. Amidst these broader market dynamics, penny stocks continue to capture investor interest due to their potential for growth at relatively low price points. While the term "penny stocks" might seem outdated, these investments often involve smaller or newer companies that can offer significant upside when backed by strong financial fundamentals. Name Share Price Market Cap Financial Health Rating Alfabs Australia (ASX:AAL) A$0.365 A$104.6M ★★★★☆☆ EZZ Life Science Holdings (ASX:EZZ) A$2.29 A$108.03M ★★★★★★ GTN (ASX:GTN) A$0.62 A$118.24M ★★★★★★ IVE Group (ASX:IGL) A$2.86 A$440.96M ★★★★★☆ Duratec (ASX:DUR) A$1.435 A$362.18M ★★★★★☆ Southern Cross Electrical Engineering (ASX:SXE) A$1.785 A$471.97M ★★★★★★ Sugar Terminals (NSX:SUG) A$0.99 A$363.6M ★★★★★★ Navigator Global Investments (ASX:NGI) A$1.77 A$867.44M ★★★★★☆ Bisalloy Steel Group (ASX:BIS) A$4.15 A$196.92M ★★★★★★ CTI Logistics (ASX:CLX) A$1.80 A$144.98M ★★★★☆☆ Click here to see the full list of 468 stocks from our ASX Penny Stocks screener. Let's uncover some gems from our specialized screener. Simply Wall St Financial Health Rating: ★★★★★☆ Overview: Emerald Resources NL focuses on the exploration and development of mineral reserves in Cambodia and Australia, with a market cap of A$2.60 billion. Operations: The company generates revenue primarily from its Mine Operations segment, which accounts for A$427.32 million. Market Cap: A$2.6B Emerald Resources has demonstrated significant financial strength and growth, with its earnings increasing by 32.2% over the past year, surpassing industry averages. The company maintains a solid balance sheet, as its debt is well covered by operating cash flow and it holds more cash than total debt. Recent production guidance indicates robust gold output from the Okvau Gold Mine through 2026, suggesting operational stability. Despite a low Return on Equity of 15.6%, Emerald's net profit margins have improved to 23.2%, reflecting efficient management practices without shareholder dilution in the past year. Unlock comprehensive insights into our analysis of Emerald Resources stock in this financial health report. Explore Emerald Resources' analyst forecasts in our growth report. Simply Wall St Financial Health Rating: ★★★★★★ Overview: RPMGlobal Holdings Limited develops and provides mining software solutions across Australia, Asia, the Americas, Africa, and Europe with a market cap of A$717.37 million. Operations: RPMGlobal Holdings generates revenue primarily from its Software segment, which accounts for A$74.88 million, and its Advisory services, contributing A$34.17 million. Market Cap: A$717.37M RPMGlobal Holdings has shown financial resilience with no debt over the past five years, supported by experienced management and board members. Despite a stable weekly volatility of 7%, RPMGlobal faces challenges with declining earnings, forecasted to decrease by an average of 27.2% annually over the next three years. The company's net profit margin has dropped from 9.7% last year to 6.2%, and its Return on Equity is considered low at 12%. However, RPMGlobal's short-term assets comfortably cover both short-term and long-term liabilities, ensuring a solid liquidity position amidst these challenges. Take a closer look at RPMGlobal Holdings' potential here in our financial health report. Evaluate RPMGlobal Holdings' prospects by accessing our earnings growth report. Simply Wall St Financial Health Rating: ★★★★★☆ Overview: Web Travel Group Limited offers online travel booking services across Australia, the United Arab Emirates, the United Kingdom, and internationally, with a market cap of A$1.61 billion. Operations: The company generates revenue from its Business to Business Travel (B2B) segment, amounting to A$328.4 million. Market Cap: A$1.61B Web Travel Group's financial profile reveals a mixed picture for potential investors. While the company boasts a substantial market cap of A$1.61 billion and generates significant revenue from its B2B segment, recent earnings growth has been negative at -85.9%, with profit margins dropping to 3.4% from 24.6% last year, partly due to large one-off losses impacting results. Despite these challenges, the company's short-term assets exceed both short-term and long-term liabilities, providing financial stability. Upcoming board changes may bring fresh perspectives as Melanie Wilson and Paul Scurrah join as independent non-executive directors in July 2025. Get an in-depth perspective on Web Travel Group's performance by reading our balance sheet health report here. Gain insights into Web Travel Group's future direction by reviewing our growth report. Take a closer look at our ASX Penny Stocks list of 468 companies by clicking here. Interested In Other Possibilities? Find companies with promising cash flow potential yet trading below their fair value. This 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. Companies discussed in this article include ASX:EMR ASX:RUL and ASX:WEB. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@
Yahoo
18-06-2025
- Business
- Yahoo
ASX Opportunities: Bubs Australia And 2 Other Promising Penny Stocks
As Australian shares face a potential dip, with ASX 200 futures down 0.29%, global tensions and economic uncertainties are influencing market sentiment. Despite these challenges, the allure of penny stocks remains strong for investors seeking growth opportunities at lower price points. Often representing smaller or newer companies, these stocks can offer hidden value when backed by solid financials, making them an intriguing option for those looking to uncover potential in the market's less explored corners. Name Share Price Market Cap Financial Health Rating EZZ Life Science Holdings (ASX:EZZ) A$2.24 A$105.67M ★★★★★★ GTN (ASX:GTN) A$0.61 A$116.42M ★★★★★★ IVE Group (ASX:IGL) A$2.76 A$425.54M ★★★★★☆ West African Resources (ASX:WAF) A$2.32 A$2.64B ★★★★★★ Southern Cross Electrical Engineering (ASX:SXE) A$1.735 A$458.75M ★★★★★★ Tasmea (ASX:TEA) A$3.19 A$751.63M ★★★★★☆ Regal Partners (ASX:RPL) A$2.10 A$705.94M ★★★★★★ Lindsay Australia (ASX:LAU) A$0.715 A$226.78M ★★★★☆☆ Bisalloy Steel Group (ASX:BIS) A$3.35 A$158.96M ★★★★★★ CTI Logistics (ASX:CLX) A$1.76 A$141.76M ★★★★☆☆ Click here to see the full list of 1,007 stocks from our ASX Penny Stocks screener. Let's review some notable picks from our screened stocks. Simply Wall St Financial Health Rating: ★★★★☆☆ Overview: Bubs Australia Limited operates in the manufacture and sale of infant nutrition and wellbeing products across Australia, China, the United States, and other international markets, with a market cap of A$138.44 million. Operations: The company's revenue segment is primarily derived from its Food Processing operations, totaling A$88.82 million. Market Cap: A$138.44M Bubs Australia, with a market cap of A$138.44 million, derives significant revenue from its Food Processing operations totaling A$88.82 million. While the company is currently unprofitable and has seen increasing losses over the past five years, it maintains more cash than total debt and has sufficient cash runway for over a year based on current free cash flow. Bubs' short-term assets exceed both its short-term and long-term liabilities, providing some financial stability despite challenges in profitability. The stock trades significantly below estimated fair value, with earnings forecasted to grow substantially in the future. Dive into the specifics of Bubs Australia here with our thorough balance sheet health report. Explore Bubs Australia's analyst forecasts in our growth report. Simply Wall St Financial Health Rating: ★★★★☆☆ Overview: Element 25 Limited is an Australian company focused on the exploration of mineral properties, with a market cap of A$56.01 million. Operations: The company generates revenue from its exploration activities, amounting to A$8.73 million. Market Cap: A$56.01M Element 25 Limited, with a market cap of A$56.01 million, is focused on mineral exploration and is currently pre-revenue. The company has announced a non-binding MoU with Nissan Chemical Corporation to explore developing a High Purity Manganese Sulphate Monohydrate facility in Japan, leveraging synergies at the Tokyo Bay site. Despite being debt-free and having short-term assets exceeding liabilities, Element 25 faces challenges with less than one year of cash runway and increasing losses over five years. Its board is experienced but the management tenure data is insufficient to assess experience levels fully. Click here to discover the nuances of Element 25 with our detailed analytical financial health report. Examine Element 25's past performance report to understand how it has performed in prior years. Simply Wall St Financial Health Rating: ★★★★★☆ Overview: Pantoro Gold Limited, with a market cap of A$1.42 billion, is involved in gold mining, processing, and exploration activities in Western Australia. Operations: The company's revenue is primarily derived from the Norseman Gold Project, which generated A$289.11 million. Market Cap: A$1.42B Pantoro Gold Limited, with a market cap of A$1.42 billion, is involved in gold mining and exploration activities primarily through the Norseman Gold Project, generating revenue of A$289.11 million. Despite being unprofitable and having increased losses over the past five years, Pantoro's short-term assets exceed both its short-term and long-term liabilities. The company has more cash than debt and maintains a stable weekly volatility at 10%. Recent drilling results from the OK Underground Mine indicate strong continuity in mineralization, supporting potential future Ore Reserve upgrades as part of its growth program initiated in late 2024. Get an in-depth perspective on Pantoro Gold's performance by reading our balance sheet health report here. Assess Pantoro Gold's future earnings estimates with our detailed growth reports. Discover the full array of 1,007 ASX Penny Stocks right here. Ready To Venture Into Other Investment Styles? Find companies with promising cash flow potential yet trading below their fair value. This 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. Companies discussed in this article include ASX:BUB ASX:E25 and ASX:PNR. This article was originally published by Simply Wall St. Have feedback on this article? Concerned about the content? with us directly. Alternatively, email editorial-team@ 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
14-05-2025
- Business
- Yahoo
Are Investors Undervaluing Southern Cross Electrical Engineering Limited (ASX:SXE) By 22%?
Using the 2 Stage Free Cash Flow to Equity, Southern Cross Electrical Engineering fair value estimate is AU$2.36 Current share price of AU$1.85 suggests Southern Cross Electrical Engineering is potentially 22% undervalued The AU$2.41 analyst price target for SXE is 2.1% more than our estimate of fair value In this article we are going to estimate the intrinsic value of Southern Cross Electrical Engineering Limited (ASX:SXE) by taking the expected future cash flows and discounting them to their present value. One way to achieve this is by employing the Discounted Cash Flow (DCF) model. Before you think you won't be able to understand it, just read on! It's actually much less complex than you'd imagine. We would caution that there are many ways of valuing a company and, like the DCF, each technique has advantages and disadvantages in certain scenarios. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. Trump has pledged to "unleash" American oil and gas and these 15 US stocks have developments that are poised to benefit. We are going to use a two-stage DCF model, which, as the name states, takes into account two stages of growth. The first stage is generally a higher growth period which levels off heading towards the terminal value, captured in the second 'steady growth' period. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 2025 2026 2027 2028 2029 2030 2031 2032 2033 2034 Levered FCF (A$, Millions) AU$10.8m AU$39.7m AU$47.4m AU$40.6m AU$36.8m AU$34.7m AU$33.7m AU$33.2m AU$33.2m AU$33.4m Growth Rate Estimate Source Analyst x2 Analyst x2 Analyst x2 Est @ -14.38% Est @ -9.25% Est @ -5.65% Est @ -3.13% Est @ -1.37% Est @ -0.14% Est @ 0.73% Present Value (A$, Millions) Discounted @ 7.2% AU$10.0 AU$34.5 AU$38.5 AU$30.8 AU$26.0 AU$22.9 AU$20.7 AU$19.1 AU$17.8 AU$16.7 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = AU$237m The second stage is also known as Terminal Value, this is the business's cash flow after the first stage. The Gordon Growth formula is used to calculate Terminal Value at a future annual growth rate equal to the 5-year average of the 10-year government bond yield of 2.7%. We discount the terminal cash flows to today's value at a cost of equity of 7.2%. Terminal Value (TV)= FCF2034 × (1 + g) ÷ (r – g) = AU$33m× (1 + 2.7%) ÷ (7.2%– 2.7%) = AU$773m Present Value of Terminal Value (PVTV)= TV / (1 + r)10= AU$773m÷ ( 1 + 7.2%)10= AU$386m The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is AU$623m. The last step is to then divide the equity value by the number of shares outstanding. Compared to the current share price of AU$1.9, the company appears a touch undervalued at a 22% 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. Part of investing is coming up with your own evaluation of a company's future performance, so try the calculation yourself and check your own assumptions. 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 Southern Cross Electrical Engineering 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 7.2%, which is based on a levered beta of 1.025. 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. Check out our latest analysis for Southern Cross Electrical Engineering Strength Earnings growth over the past year exceeded the industry. Currently debt free. Dividends are covered by earnings and cash flows. Weakness Dividend is low compared to the top 25% of dividend payers in the Construction market. Opportunity Annual earnings are forecast to grow faster than the Australian market. Trading below our estimate of fair value by more than 20%. Threat Revenue is forecast to grow slower than 20% per year. Although the valuation of a company is important, it ideally won't be the sole piece of analysis you scrutinize for a company. It's not possible to obtain a foolproof valuation with a DCF model. Preferably you'd apply different cases and assumptions and see how they would impact the company's valuation. 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 Southern Cross Electrical Engineering, we've compiled three essential elements you should explore: Risks: For example, we've discovered 1 warning sign for Southern Cross Electrical Engineering that you should be aware of before investing here. Future Earnings: How does SXE'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 Solid Businesses: Low debt, high returns on equity and good past performance are fundamental to a strong business. Why not explore our interactive list of stocks with solid business fundamentals to see if there are other companies you may not have considered! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the ASX every day. If you want to find the calculation for other stocks 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. 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
15-04-2025
- Business
- Yahoo
Here's Why We Think Southern Cross Electrical Engineering (ASX:SXE) Might Deserve Your Attention Today
For beginners, it can seem like a good idea (and an exciting prospect) to buy a company that tells a good story to investors, even if it currently lacks a track record of revenue and profit. But the reality is that when a company loses money each year, for long enough, its investors will usually take their share of those losses. Loss making companies can act like a sponge for capital - so investors should be cautious that they're not throwing good money after bad. If this kind of company isn't your style, you like companies that generate revenue, and even earn profits, then you may well be interested in Southern Cross Electrical Engineering (ASX:SXE). While profit isn't the sole metric that should be considered when investing, it's worth recognising businesses that can consistently produce it. Our free stock report includes 1 warning sign investors should be aware of before investing in Southern Cross Electrical Engineering. Read for free now. If a company can keep growing earnings per share (EPS) long enough, its share price should eventually follow. So it makes sense that experienced investors pay close attention to company EPS when undertaking investment research. Impressively, Southern Cross Electrical Engineering has grown EPS by 19% per year, compound, in the last three years. If the company can sustain that sort of growth, we'd expect shareholders to come away satisfied. Top-line growth is a great indicator that growth is sustainable, and combined with a high earnings before interest and taxation (EBIT) margin, it's a great way for a company to maintain a competitive advantage in the market. While we note Southern Cross Electrical Engineering achieved similar EBIT margins to last year, revenue grew by a solid 49% to AU$694m. That's a real positive. In the chart below, you can see how the company has grown earnings and revenue, over time. Click on the chart to see the exact numbers. View our latest analysis for Southern Cross Electrical Engineering In investing, as in life, the future matters more than the past. So why not check out this free interactive visualization of Southern Cross Electrical Engineering's forecast profits? It should give investors a sense of security owning shares in a company if insiders also own shares, creating a close alignment their interests. Shareholders will be pleased by the fact that insiders own Southern Cross Electrical Engineering shares worth a considerable sum. Given insiders own a significant chunk of shares, currently valued at AU$109m, they have plenty of motivation to push the business to succeed. At 24% of the company, the co-investment by insiders fosters confidence that management will make long-term focussed decisions. If you believe that share price follows earnings per share you should definitely be delving further into Southern Cross Electrical Engineering's strong EPS growth. Further, the high level of insider ownership is impressive and suggests that the management appreciates the EPS growth and has faith in Southern Cross Electrical Engineering's continuing strength. The growth and insider confidence is looked upon well and so it's worthwhile to investigate further with a view to discern the stock's true value. Don't forget that there may still be risks. For instance, we've identified 1 warning sign for Southern Cross Electrical Engineering that you should be aware of. There's always the possibility of doing well buying stocks that are not growing earnings and do not have insiders buying shares. But for those who consider these important metrics, we encourage you to check out companies that do have those features. You can access a tailored list of Australian companies which have demonstrated growth backed by significant insider holdings. Please note the insider transactions discussed in this article refer to reportable transactions in the relevant jurisdiction. 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.
Yahoo
22-02-2025
- Business
- Yahoo
Southern Cross Electrical Engineering (ASX:SXE) Is Due To Pay A Dividend Of A$0.025
Southern Cross Electrical Engineering Limited (ASX:SXE) has announced that it will pay a dividend of A$0.025 per share on the 9th of April. The payment will take the dividend yield to 3.3%, which is in line with the average for the industry. View our latest analysis for Southern Cross Electrical Engineering We aren't too impressed by dividend yields unless they can be sustained over time. Based on the last payment, Southern Cross Electrical Engineering was quite comfortably earning enough to cover the dividend. This indicates that a lot of the earnings are being reinvested into the business, with the aim of fueling growth. The next year is set to see EPS grow by 27.6%. If the dividend continues along recent trends, we estimate the payout ratio will be 59%, which is in the range that makes us comfortable with the sustainability of the dividend. The company's dividend history has been marked by instability, with at least one cut in the last 10 years. The dividend has gone from an annual total of A$0.027 in 2015 to the most recent total annual payment of A$0.06. This implies that the company grew its distributions at a yearly rate of about 8.3% over that duration. We like to see dividends have grown at a reasonable rate, but with at least one substantial cut in the payments, we're not certain this dividend stock would be ideal for someone intending to live on the income. With a relatively unstable dividend, it's even more important to evaluate if earnings per share is growing, which could point to a growing dividend in the future. Southern Cross Electrical Engineering has seen EPS rising for the last five years, at 13% per annum. Shareholders are getting plenty of the earnings returned to them, which combined with strong growth makes this quite appealing. In summary, it is always positive to see the dividend being increased, and we are particularly pleased with its overall sustainability. Distributions are quite easily covered by earnings, which are also being converted to cash flows. All of these factors considered, we think this has solid potential as a dividend stock. Companies possessing a stable dividend policy will likely enjoy greater investor interest than those suffering from a more inconsistent approach. Meanwhile, despite the importance of dividend payments, they are not the only factors our readers should know when assessing a company. Taking the debate a bit further, we've identified 1 warning sign for Southern Cross Electrical Engineering that investors need to be conscious of moving forward. Looking for more high-yielding dividend ideas? Try our collection of strong dividend payers. 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
