Brambles has been excluded from our models for the last 2 years, due to the lower high price formations, caused be deteriorating profit margins.
We’seen underlying group profit slip over the last 2.5 years from high single digit growth, to negative growth.
After reporting underlying EBIT of US$997, up 4% on the same time last year, we’ve hopefully seen the inflection point. A further positive is the announcement of the IFCO sale, which is likely to fetch up to US$2.5b.
With the stock trading 20x earnings on a 3% yield, we consider it close to full value.