The heavyweights are among the biggest companies listed on the stock exchange and have the capability of moving the market in the directions they are trending towards. After falling for two days the markets are flat which are weighed by the few market movers discussed herein. These market movers are seen in green today;
NAVITAS LIMITED (ASX: NVT) – As the Simplified Student Visa Framework (SSVF) contributed to a bias by international students towards the post graduate studies and highest ranked SSVF universities, the growth rate had slowed down. Group EBITDA margin impacted by closed colleges and performance in C&I division falling down by 47% from $155 million in FY17 to $82 million in FY18. The revenue of the company was lower only by 3% to $931 million in FY18 from $955.2 million in FY17. Full year dividend declared of 17.4 cps in FY18 in line with lower NPAT as compared to 19.5 cps in FY17. The stock of NVT surged by 21.839% to reach a market price of $5.300, however, the stock has had a performance change of -4.61% over the last 12 months.
CSL LIMITED (ASX: CSL) – Against the 2017 numbers, the company has reported an increase of revenue from $6,947 million in FY17 to $7,915 million in FY 18 which is an increase of 11%, CSL continues to deliver on its strategy. Resultant to which EBIT has also increased from $1,779 million in FY 17 to $2,380 million in FY18 reporting a change of 33% against the previous year. CSL growth has been positive in all regions across the globe with the strong demand for company’s recombinant and plasma products is expected to go ahead in FY 2019. As a result, the group expects an increase of 9% in the revenue for FY 2019 and NPAT to increase between 10% and 14% of the FY18 number. The stock of CSL limited surged by 1.907% to reach a market price of $191.800, the stock has undergone a performance change of 37.94% over past 1 year. [optin-monster-shortcode id=”wxhmli4jjedneglg1trq”]
TELSTRA CORPORATION LIMITED (ASX: TLS) – Compared to $26,013 million in FY 2017, the company posted a flat revenue of $26,011 Mn in FY18 due to the intense competition for mobile customers and the impact of NBN rollout by the company. Because of which profit made to the equity shareholders of Telstra was down by 8.4% to $3,563 million against $3,891 million in FY17. Moreover, compared to 32.5 cents per share in FY17, EPS shrinked for the FY18 at 30.0 cents per share. Based on the financial performance, the Board of Director cut dividend from 31 cents per share to 22 cents per share in FY18. The company is lowering 2019 guidance total income by $300 million, EBITDA by $100 million, net nbn one-offs less nbn cost to connect by $200 million and no change to free cashflow. The stock of Telstra surged by 0.943% to reach a market price of $3.210, the stock has undergone a performance change of 3.39% over past 6 months.
RIO TINTO LIMITED (ASX: RIO) – Driven by higher pricing and increased volumes, the underlying EBITDA has increased from $9.0 billion in H1 2017 to $9.2 billion in H1 2018. It has a robust financial performance, RIO invested $1.4 billion in high return growth, along with disciplined capital allocation and is well positioned for long term growth. From productivity in H1 2018 the company delivered $0.3 billion free cash flow. The company reported an Interim 2018 dividend of $2.2 billion representing a robust financial performance. The stock of RIO surged by 0.584% to reach a market price of $79.170. The stock has undergone a performance change of 13.74% over past 1 year. The P/E of the company is 10.780 the EPS stands at 7.299 AUD which reflects a better performance when compared to peers.
BHP BILLITON LIMITED (ASX: BHP) – This year, the company returned US $6.3 billion to shareholders and announced their highest ever final dividend of 63 US cents per share. In FY2018, underlying attributable profit was up to US$8.9 billion i.e. by 33 percent. Compared to FY2017 BHP Billiton delivered an eight per cent increase in annual production. Generated over US$12 billion of free cash flow, for the second consecutive year. This strong cash generation gives the company a flexibility in how to balance debt reduction, investment in projects and cash returns to shareholders. The underlying EBITDA of US $23.2 billion was achieved by this year. The stock of BHP surged by 0.26% to reach a market price of $34.720. The stock has undergone a performance change of 34.720% over past 1 year.
MAYNE PHARMA GROUP LIMITED (ASX: MYX) – The Company has posted a 7% drop in revenue for FY18 at AUD $530.3 Mn compared to AUD $572.6 Mn in FY17. Compared to the corresponding period in FY17 company posted an increase of 18% in revenue making a comeback in second half. Driven by improved underlying business performance the company saw a significant strong second half with reported EBITDA up 307% and adjusted EBITDA up by 35%. With 2H FY18 operating cashflow of A $121.5 million the 2H FY18 result was up by 53%. Also, in 2H 18 the net reduced and maintains a conservative balance sheet. The stock of MYX surged by 3.292% to reach a market price of $1.255. The stock has undergone a performance change of 86.92% over past 1 year.
COMMONWEALTH BANK OF AUSTRALIA (ASX: CBA) – In FY 18, the bank has delivered 4.8% fall in the cash net profit after tax on the prior year to $9,233 million. Driven by a rise in the amount of funds invested leading to positive net flows and positive market returns on invested funds, the bank’s Funds management income in 2018 grew by 9.3% to $2,091 million. The financial performance has supported a strong dividend for shareholders and enabled the board to determine a final dividend to $4.31 per share. Driven by the core banking businesses the operating momentum was resilient. At a CAGR of over 0.2% during FY14-FY18, the company has seen its EPS growing which is further expected to improve bottom line earning. The stock of CBA surged by 0.32% to reach a market price of $68.970. The stock has undergone a performance change of -10.38% over past 1 year.
OROCOBRE LIMITED (ASX: ORE) – The company has strong operational earnings and is ready for future growth. Underlying NPAT from continuing operations at US$25.7 Mn compared to US$ 13.8 Mn the group has posted strong FY18 results. The group had cash reserve of US $ 316.7 Mn, and new cash of US$ 229 Mn, the company represents strong balance sheet. As at 30 June 2018. With both the projects advancing towards final investment decision, at Olaroz Stage 2 and Naraha Lithium Hydroxide project, the company is expecting a promising growth opportunity. Orocobre has a high P/E of 370.540 and Earning Per Share (EPS) of 0.011 AUD, hinting an expected future growth. The stock of ORE dipped by 5.542% to reach a market price of $3.920. The stock has undergone a performance change of -16.82% over past 1 year.
The Income available from dividends remains attractive for many investors.
We take a look at the best yields on the market and assess what they say about a company’s prospect.
One Thing is certain, though, Australia interest rates are still low, making income difficult to come by and keeping the focus for many investors on high yielding stocks. Kalkine’s team of analysts bought you handpicked report for “Top 25 Dividend Stocks For 2018.”
ASX-relevant Special Reports are published year-round to provide a detailed analysis into an investing opportunity or a potential risk to your portfolio.
Click here to get your free report.
The advice given by Kalkine Pty Ltd and provided on this website is general information only and it does not take into account your investment objectives, financial situation or needs. You should therefore consider whether the advice is appropriate to your investment objectives, financial situation and needs before acting upon it. You should seek advice from a financial adviser, stockbroker or other professional (including taxation and legal advice) as necessary before acting on any advice. Not all investments are appropriate for all people. Kalkinemedia.com and associated websites are published by Kalkine Pty Ltd ABN 34 154 808 312 (Australian Financial Services License Number 425376). website), employees and/or associates of Kalkine Pty Ltd do not hold positions in any of the stocks covered on the website. These stocks can change any time and readers of the reports should not consider these stocks as advice or recommendations.