Company: Mortgage Choice
closing price as at 20/10/2008: 90 cents
Avg earnings per share (2004-2008) Dilutive: 13.54 cents
PE ratio as of current price and current eps (2008): 5.52 x
PE ratio as of current price and historical eps: 6.64 x
Based on avg EPS approx price should be at 75 cents
EPS 2008 Dilutive: 16.3 cents
Operating Cash Earnings Per share: 14.43 cents (2008)
" " " : 14.22 cents (2007)
" " ": 10.84 cents (2006)
Return on Assets (adjusted for core operations): 9.42 % (2008)
Return on Assets (adjusted for core operations): 10.42% (2007)
Return on Equity (adjusted for core operations): 33.76% (2008)
Return on Equity (adjusted for core operations): 37 % (2007)
Free Cash Flow: $5.4 million (2008)
Free Cash Flow: $ -3.8 million (2007)
Current Ratio: 1.57 x
Debt to equity: 0
Profit Margin (adjusted for operations): 12.94% (2008)
" " : 13.35% (2007)
" " : 13.48% (2006)
" " : 11.78% (2005)
Proportion of dividend paid to NPAT: 11.35% (2008)
" " ": 22% (2006)
" " " : 14.41% (2006)
Net Asset Value: 43 cents (2008) adjusted for intangibles and goodwill
Net Book value: 45.57 cents (2008)Calculated based on avg equity
Outstanding avg shares for 2008: 117786500
4 comments:
Where did you get your net debt ratio from? Over here, the stats seems to be pretty rubbish: http://markets.news.com.au/Newscorp/Company/Ratios.aspx?SecId=MOC
I had a (really) quick glance through the annual report a couple of nights ago and it seems like a solid enough company with a solid enough business model.
However, their revenue structure isn't immediately obvious to me:
- How much of each transaction goes to the the franchisee, and how much goes to the company?
- Does the company earn a lump sum for each realized transaction or is it a subscription kind of fee (i.e. if the mortgage runs for 30 years, does the company get paid for 30 years? what if the customer switches providers?)
It'll definitely have to be digested alot more and me being who I am (someone without accounting/finance backgroud), I'll look alot less at the figures and stats, and satisfy myself that the business model they have is indeed sound and their management competent.
That said, if they do drop to 60 cents a share, that should be a pretty good buy in terms of value (just like 99% of the market out there atm)
I cant view your site you have given me. Anyway most of my ratios have been adjusted for. The ratios on your site may be correct. But I calculate mine based on the more conservative point of view. By only using things like core earnings.
Your question on Revenue structure.
There is a section on that in the annual report regarding how much of the profits will go to the franchisee as charges.However i havent put that in. I will post up more about the other areas of the business soon.
Yes you are indeed correct, the mortgage runs for 30 years, the company gets paid 30 years. That is how the structure runs. But the average term of receivables of this business runs for about 3 to 5years, instead of 30.
Yea, I think, figures, leave it to me to compile them for you to read. You can contribute the more fundamental side, such as business model, marketing, management etc.
I think you are pretty good in it.
It is a good thing that if a mortgage runs for 30 years, the company earns for 30 years. That'll pretty much make it risk free, no? I mean the lenders are the ones supplying the money, all the company has to do is to pair up the borrower and the lender and they'll earn a steady stream of income for 30 years, even though they didn't do a thing.
Anyways, I haven't read their annual report so I don't know. I also don't have any $$$ right now to buy anything, so no point in me looking.
What do YOU like about them?
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