Woolworths Group Limited
Woolworths Group Limited (ASX:WOW) operates in Food & Staples retail stores throughout Australia. Woolworths saw a decline of 3.237% in its stock price on September 13, 2018. This decline is a result of recent news release of class action filed by Maurice Blackburn Lawyers and International Litigation funding partners against WOW which alleges that the company has affected its competitiveness by issuing its profit guidance which was misleading. According to Woolworths on 24th January 2018 IMF Bentham announced that the class action did not meet the investment criteria due to which IMF Bentham is not proceeding further and after that Woolworths has not received any further correspondence from Maurie Blackburn till the recent news release. However, Woolworths affirms that they are fully prepared for the defense. Also, today is the Ex-dividend date which might be the reason for the decline of stock prices as many shareholders buy the stock just before the ex-dividend date to capture the dividend and sells it the next day. According to the company’s presentation, the earnings before interest and tax (EBIT) has been increased by 3.8% in FY18 compared to the last year. Woolworths Group is targeting the dividend payout ratio of 70%, subject to the trading performance. In June the Company’s Credit rating was revised to Baa2 underpinned by of strong credit metric with higher EBIT. Meanwhile, the stock traded at $ 27.50 with the market-cap of circa $37.32 Mn as of September 13, 2018.
CSL Ltd (ASX:CSL) is a biotechnological company that research, manufacture and sells products to treat and prevent humans from medical conditions. CSL ex-dividend date was 11th September 2018, hence many shareholders would have sold their share after getting the dividend which could be a reason of decline of the share price of CSL today by 2.647%. And the company is having a very high P/E ratio which is 40.9x and this could be an indication that the company is being overvalued and stocks may correct further. Compared to last year there has been an increase of 11% in the revenues and Earnings before interest and tax has been increased by 33% which has caused Earnings Per share (EPS) to increase by 29% on constant currency basis, from $2.94 to $3.82 in FY18 over the prior year. Also, the company is planning to increase the capital expenditure in the range of approximately $1.2 Bn to $1.3 Bn by FY 19. Company’s business in China is going well as there has been an increase in the sales of 11% this year. Also, there is an expansion of business in tier 1 and tier 2 cities of China. The company is also planning to spend around $150 to $200 million in research and development facilities. Meanwhile, the stock has risen 10.86 percent in the past three months (as at September 12, 2018) and traded at the current market price of $206.34.
APA group (ASX:APA) is having natural gas infrastructure business and it also owns and operates electricity assets. Previously APA has announced that the trust scheme under CKM Australia Bidco Pty Ltd is going to acquire the all the stapled securities of APA and now Australia Competition and Consumer Commission (ACCC) has given confirmation that they will not oppose this decision which has resulted in the fall of the share price of APA group by 2.323% on September 13, 2018. Also, the Company has recently paid its dividend on Dividend pay date of 12th September which is also a reason for decline as many shareholders tend to sell the stock after receiving the dividends. The overall revenue of the company has been increased by 2.8% compared to last year also the total capital expenditure has been increased from $377.5 million in the year 2017 to $875.5 million in 2018. The company is on a track to deliver approximately 1.4 billion plus of committed growth projects by FY 2019. The company has retained its Credited rating of Baa2 which will help in facilitating the global debt capital market. Majority of the interest cost obligation is being hedged which proves that the company is maintaining its credit risk efficiently. Meanwhile, the stock has risen 19.71 percent in the past three months as at September 12, 2018 and traded at close to 52-week high level of $10.290. The stock traded at a market price of $ 9.670 with the market capitalization of circa $11.68 Bn as of September 13, 2018.
Flight Center Travel
Flight Centre Travel Group Ltd (ASX:FLT) is a retail travel outlet in Australia. The Company's brand and agencies include Flight Centre, Travel Associates, and Student Flights. The company’s share prices plunged 2.209% today as it was an ex-dividend date today which has led to this decline. Flight Centre shares are not overly cheap, trading on a price to earnings (P/E) ratio of around 21.9x times earnings. FLT shares are trading on a fully franked dividend yield of 2.93 percent. On the other hand, the group posted decent FY18 results with total revenue coming in 6.5% higher at $ 2,950 Mn compared to the prior year. Underlying PBT increased by 17% and amounted to $ 385 Mn in FY 18. PBT margin increased by 12 bps to 1.76% in FY18 as compared to the prior year. As of 30 June 2018, the company had cash and cash equivalent of $1,273 Mn with the virtual debt-free facility. The intangible assets of the company have been increased to goodwill on acquisitions and ongoing investment in Key IT projects. Strong turnover and growth are also seen due to movement in current trade payables and other liabilities. Also, the company is planning to have a capital expenditure of $100 million to $110 million in FY 2019. Meanwhile, the stock traded at a market price of $ 55.780 with the market capitalization of circa $5.77 Bn as of September 13, 2018.
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