With S&P/ASX 200 index major heavyweights along with others like Bega Cheese are down and are weighing the share markets. Let’s look at the few of them which are against the rally as on September 12, 2018.
BHP BILLITON LIMITED (ASX: BHP) -The company reported a full year underlying EBITDA at US$24.1 billion and a profit of US$8.9 bn. The growth has been reflected in the earnings per share which was 33% higher at 168 cents (US$) per share. The dividend of 88.545c has been recently declared which is payable on September 25, 2018. With BHP, Newcrest also competed and are in the news to increase their stake in the company SolGold. For 27.4 million pounds or $35.2 million, the company will buy around 6.1 percent interest in SolGold and stakes of 103.1 million shares are acquired in London listed SolGold from Guyana Goldfields Inc. The stock has undergone a performance change of 16.42% over the past 1 year and is trading at a market price of $30.840. The group has a price to earnings ratio (P/E) of 33.130 and earnings per share (EPS) 0.942 AUD which represent better growth prospects in the future.
WESTPAC BANKING CORPORATION (ASX: WBC) – The company reported an 11bps fall in the net interest margin to 2.06% for June Quarter’ 18 and net profit of $4,198 million which has been adjusted for material items, items not considered when dividends are reported. Meanwhile the cash earnings stand at $4,251 million. Following the determination of the 2018 interim dividend, Westpac’s leverage ratio was 5.6% as at 30 June 2018, 0.2% lower than 31 March 2018. However, company had a loss on the net interest margin due to industry wide sluggishness. The company has however paid the dividends consistently, maintaining the annual dividend yield at 6.59%. The stock has undergone a performance change of -10.98% over the past 1 year and is trading at a market price of $27.630. The group has a price to earnings ratio (P/E) of 11.390 and earnings per share (EPS) 2.449 AUD which compares better among the peers.
TELSTRA CORPORATION LIMITED (ASX: TLS) – The company has lowered the 2019 guidance of EBITDA by $100 million, total income by $300 million, net nbn one-offs less nbn cost to connect by $200 million which is because of 2019 nbn corporate plan. For the financial year ended 30 June 2018, telecommunication giant Telstra Corporation Limited declared 11 cents of fully franked final dividend which takes full year yield to 22 cents which is payable on 27 September 2018. The decline in dividend yield is directly attributable to lower net profit after tax which has slipped by 8.9% in FY18. The stock has undergone a performance change of -12.14% over the past 1 year and is trading at a market price of $3.185. The group has a price to earnings ratio (P/E) of 10.670 and earnings per share (EPS) 0.300 AUD which compares better against the industry median.
WOOLWORTHS GROUP LIMITED (ASX: WOW) - Driven by Australian Food, Group sales from continuing operations was up by 3.4% while the EBIT was up by 9.5% despite ongoing reinvestment. Including special dividend of 10c, FY18 dividend is up by 22.6%, with most recent dividend to be declared of 60c payable at October 12, 2018. On 10 September 2018, seeking $100 million payout to aggrieved investors on the breach of continuous disclosure obligations and misleading the investors by giving such profit guidance that could not be met, Law firm Maurice Blackburn has filed a case against Woolworths Group. The stock has undergone a performance change of 12.54% over the past 1 year and is trading at a market price of $28.480. The group has a price to earnings ratio (P/E) of 21.520 and earnings per share (EPS) 1.326 AUD.
BEGA CHEESE LIMITED (ASX: BGA) - To raise approximately A$200 million, the company announced completion of a non-underwritten institutional share placement and this will be followed by a Share Purchase Plan which is capped at A$50 million and is not underwritten. To take advantage of future growth opportunities in dairy and food, the proceeds will be used to reduce debt of $245.4 million following the acquisition of the Koroit Facility and improve Bega Cheese’s financial flexibility. However, the revenue was up 17% to be at $1.44 billion. The statutory net profit after tax of $28.8 million is impacted by higher effective tax rate due to corporate activity. The stock has undergone a performance change of 4.84% over the past 1 year and is trading at a market price of $7.190. The group has a high price to earnings ratio (P/E) of 48.590 and earnings per share (EPS) 0.156 AUD.
PERPETUAL LIMITED (ASX: PPT) – The company recently announced 2% growth in statutory net profit after tax (NPAT) of $140.2 million for the year ended 30 June 2018. Operating revenue was $533.7 million, an improvement of 4% on prior year. Driven by strong client base and favorable market conditions, the company has observed strong growth in Perpetual Private and Perpetual Corporate Trust delivering profit growth (PBT) of 14% and 16%, respectively. However, Perpetual investment had a challenging year recording 3% decline in profit before tax to $112.5 million in FY18. Return on equity on NPAT has also declined by 0.5% from 22.1% in FY17 to 21.6%. The stock has undergone a performance change of -19.24% over the past 1 year and is trading at a market price of $41.050. The group has a price to earnings ratio (P/E) of 14.060 and earnings per share (EPS) 3.050 AUD.
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