Cleanaway – Buy

Posted on | by Leon Hinde

Cleanaway Waste Management is under Algo Engine buy conditions and is a current holding in our ASX 100 model portfolio.

Cleanaway financial results for the year ended 30 June 2021

Statutory Net Profit After Tax (NPAT) increased 31.2% from $112.6 million to $147.7 million.

On an Underlying basis compared to the year ended 30 June 2020 (“FY20”) Cleanaway reported:

• NPAT increased 2.1% from $150.0 million to $153.2 million
• EBITDA increased 3.8% from $515.7 million to $535.1 million
• Net revenue increased 4.7% from $2.1 billion to $2.2 billion
• Operating cash flow increased 5.7% from $401.5 million to $424.4 million
• Final dividend increased 11.9% from 2.10 cents per share (cps) to 2.35 cps, taking the total dividend for the year 12.2% higher to 4.60 cps

Zip – Earnings Review

Posted on | by Leon Hinde

Zip Co is under Algo Engine buy conditions.

Revenue was up 150% to $403m and the pre-tax loss -$718m.

Zip said its cash earnings before tax, depreciation and amortisation loss was $22.9 million, which missed consensus expectations for positive earnings of between $8 million and $9 million.

Its total reported loss of $653 million was just below the total amount of capital that Zip raised over the year to support its global growth.

We’re watching ZIP with a great deal of interest but remain cautious on the sector trends with regards to increasing bad debts.

US Durable Goods

Posted on | by Leon Hinde

U.S. business equipment spending strong even as new orders flat in July
New orders for key U.S.-made capital goods were unexpectedly flat in July amid supply constraints and a shift in demand to services, suggesting that business spending on equipment could slow in the second half after robust growth over the past year.

Bega – FY21 Earnings

Posted on | by Leon Hinde

Bega Cheese is under Algo Engine buy conditions and is a current holding in our ASX model portfolio.

Accumulate within the $5.00 – $5.25 price range.

Update: 27/8 Bega FY21 Earnings release: Performance highlights

 Reduction in normalised EBITDA to net debt leverage
ratio from 2.35 times to 2.25 times
 Normalised EBITDA increased by 38% to $141.7 million
 Statutory EBITDA increase by 108% to $182.7 million
 Operating cash flow $111.4 million

Reece – FY21 Earnings

Posted on | by Leon Hinde

REH achieved a 4% increase in sales to $6,271m, 11% increase in underlying EBITDA to $720m and underlying NPAT increased 25% to $285m.

Reece beat market consensus across all numbers, however, the valuation is looking stretched at 44x earning.

Be patient and wait for the next Algo Engine buy signal.

Ansell – FY21 Earnings

Posted on | by Leon Hinde

ANN:ASX is under Algo Engine sell conditions, however, we’re expecting a switch to buy conditions in the near term.

FY21 results were at the low end of guidance, with EPS US$1.92 on record sales of US$2bn.

FY22 is likely to be 5 – 10% below FY21 and the downgrade is driving the current share price correction. Be patient with this opportunity and wait for the Algo Engine to trigger a buy.

The 3% yield is well supported and buying interest will rebuild as the valuation becomes more attractive.