2 Stocks That Investors Have Liked Lately - CGL And CKF

  • Nov 12, 2018 AEDT
  • Team Kalkine
2 Stocks That Investors Have Liked Lately - CGL And CKF

The Citadel Group Limited (ASX: CGL)

Information technology group, the Citadel Group Limited (ASX: CGL) is a leading software and services company which is involved in the development and delivery of managed technology solutions. During FY 2018, the company generated record revenue and earnings, and delivered a record number of contract wins and extensions. These new contract wins, and extensions were across all the company’s verticals of National Security, Defense, e-Health, Government and Tertiary Education. During the year, the company increased its investment in its existing software solutions and launched its new cloud-based SaaS solutions Citadel-IX and vResponder. The company is well positioned to drive further growth, both locally and internationally. 

In FY 2018, the total revenues from continuing operations were $108.5 million compared with $98.9 million in FY17. The increase in the revenue was derived through a combination of internal growth strategies, including success on the signing and progress of new contracts, acquisition activities and execution on existing contracts. The gross profit of the company increased to $54.3 million in FY18 from $46.1 million in FY17. The Net Profit After Tax (NPAT) from continuing operations attributable to members was $15.8 million in FY18, compared to $11.4 million in FY17. At the end of FY18, the company was having a strong balance sheet with cash and cash equivalent reserves of $24.9 million.

In the last three months, the share price of the company increased by 32.3 percent as on November 09, 2018, and traded at a PE level of 24.9x. CGL’s shares traded at $9.06 with a market capitalization of circa $452.2 million as on November 12, 2018. The stock was down 1.3% on November 12, 2018.

Collins Foods Limited (ASX: CKF)

Collins Foods Limited (ASX: CKF) operates food service retail outlets in Australia and during FY18 it has continued to grow its core KFC Australia business, established a KFC footprint in Europe, opened its first Taco Bell restaurant in Australia and continued to successfully transition the Sizzler business.

In FY18, the revenue of the company increased by 21.7 percent to $770.9 million and translated to 16.4 percent growth in underlying EBITDA to $94.5 million. This was underpinned by vigilant cost control and a focus on continued operational efficiency improvements, while still investing for growth. Company’s Australian KFC network continues to perform well and as the largest franchisee of KFC in Australia, the company is committed to deliver the highest quality products, at great value, to its customers. During FY 2018, the company took the strategic decision to launch the Taco Bell brand in Australia. The Board of the company is confident that the strategy it is executing will generate sustainable growth over the long-term for shareholders. The company is planning to continue its track record of successfully integrating its acquisitions, while driving operational excellence across its business.

In the past three months, the share price of the company increased by 29.94 percent as on November 09, 2018, and traded at a PE level of 24.86x. CKF’s shares traded at $7.25 with a market capitalization of circa $819.1 million as on 12 November 2018. The group is now trading close to its 52-week high price of $7.325, and was up 3.13% on 12 November 2018.


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