7 Beaten Down Stocks – GEM, RFG, NTC, MYR, SGM, NXT and MIN

  • Sep 05, 2018 AEST
  • Team Kalkine
7 Beaten Down Stocks – GEM, RFG, NTC, MYR, SGM, NXT and MIN

G8 EDUCATION LIMITED (ASX: GEM) – There is a rapid deterioration in the $13 billion industry’s economics. The company’s occupancy level had fallen to 70.1 percent i.e. by 250 basis points year on year in the 6 months ended June 30, 2018. The company declared 4.5 cents of dividend with dividend ex-date as September 13, 2018, and dividend payable date as October 5, 2018, as per the proportionate dividend policy. The revenue reported by the company was at $396.4 million which is 7.6% higher against $368.3 million in the prior period.  The company’s underlying NPAT took a nosedive of almost 23.9% from the previous corresponding year. The stock was last trading at a market price of $2.085 with a daily percentage change of 0.24% as at September 5, 2018. It has undergone a performance change of -44.83% over the past 12 months.

RETAIL FOOD GROUP LIMITED (ASX: RFG) – The company’s underlying franchise operations EBITDA for FY18 was down 45.3% on FY17 to $53.3 million. The group’s underlying NPAT declined to $33.3 million in FY 18 when compared to $75.7 million in FY 17. However, on the back of increase in the revenue of ‘Commercial Food Services’ segment of $66.5 million as of period ending 30 June 2018, revenue for the year rose 7.1% to $374.0 million. The group’s net profit was also down ($306.693) million i.e. reporting a negative growth for the FY18 because of which there was no dividend declared during FY 18. The stock was seen falling by 3.636% at a market price of $0.530 as at September 5, 2018 and is trading near its 52-week low. It has undergone a performance change of -89.04% over the past 12 months. 

NETCOMM WIRELESS LIMITED (ASX: NTC) - To supply Gfast High port count DPUs on the terms of initial minimum order of 10,000 units over an 18-month period, the extension of an agreement with NBN Co. Ltd, has been announced by telecom products developer NetComm Wireless Limited. Investors seemed to exit their position after management cautioned that FY19 would be the year of consolidation. For the full year 2018, group revenue was at $181.7 million, which is an increase of 69% YOY. Operating cash flow increased to $23.7 million and Balance Sheet remained debt free. Followed by the year of strategic investment, the company has posted record EBITDA in 2018. The company stated that for FY19, the revenue is expected to be somewhere between the range of 15% to 20% due to slower than expected implementation of the nbn FTC project. The stock was last trading at a market price of $0.780 and fell by 1.266% as at September 5, 2018, close to its 52-week low. It has undergone a performance change of -42.34% over the past 12 months.

MYER HOLDINGS LIMITED (ASX: MYR) – The company’s net profit after tax was of $40.1 million for first half off 2018 which is in line with the NPAT range guidance on Feb 9, 2018, of between $37 million to $41 million. The group has come out with its third quarter 2018 sales update in which the group reported 2.7% fall in the total sales to $635.3 Mn in Q3FY18, for the 13 weeks to 28 April 2018; and the sales have fallen 3.1%, on a comparable store basis. The total sales fell 3.0% and total year to date the sale was down by 3.4% to $2,355.0 Mn. It was mainly impacted by the challenging retail environment. However, the online sales have grown 49.4% to $35.9 Mn and online sales year to date have grown 49% to $141.1 Mn, in the third quarter. The stock was last trading at a market price of $0.445 as at September 5, 2018, with a percentage change of 1.136%. It has undergone a performance change of -40.54% over the past 12 months.

SIMS METAL MANAGEMENT LIMITED (ASX: SGM) - The company had recently enhanced its financial disclosure by providing greater financial transparency of the equity accounted results for SA Recycling LLC. The company’s 50% investment in SAR, which is held through one of the Company’s subsidiaries, was disaggregated from the historical North America Metals operating segment for market disclosure. The FY 18 full year EBIT is of $279.2 million which is up 53.1% over the prior year. Also, the NPAT is up 60% over the prior year to $192.1 million. The dividends related to FY18 was of 53 cents per share. As at June 30, 2018, the net cash and cash equivalents are at $298.1 million which has declined from the previous period by 20.1%. The stock was falling by 4.776%, trading at a market price of $12.560 as at September 5, 2018, near its 52-week low. It has undergone a performance change of -10.15% over the past 12 months.

NEXTDC LIMITED (ASX: NXT) - The company’s revenue was recorded with $37.98 million increase to $161.52 million for the year ended 30 June 2018, moving ahead of the guidance range. Driven by ecosystem growth and new facility developments taking an advantage of higher density requirements, underlying EBITDA increased to $62.6 million this year from $49.0 million in the previous year. Underlying EBITDA is forecasted to range within $75 million and $80 million, up 20%-28% on FY18. Capital expenditure for FY 18 was of $285 million was well below the underlying guidance range of $307-$327 million. Also, due to rising energy costs and other cost associated with facility expansions, profit after tax has massively declined from $23.0 million in FY17 to $6.6 million. The stock was last trading at a market price of $6.565 and fell by 2.015% as at September 5, 2018. It has undergone a performance change of 43.78% over the past 12 months.

MINERAL RESOURCES LIMITED (ASX: MIN) - In the Helena-Aurora Range, to extend the life of its Yilgarn operations by 15 years, MinRes had been counting on gaining approval for its Bungalbin project. The group reported a net profit after tax of $272 million for FY18, an increase of 35% on prior year. Following to the results announcement made on last week, Mineral Resources Limited recently, released Investor Presentation for the year ending 30 June 2018. Earnings before interest and tax were $507 million recording a growth of 9% on FY17 EBITDA which is in line with financial guidance. As group’s revenues grew 16% to $1.71 billion, the board declared total annual dividend of 65 cents per share including the fully franked final dividend of 40 cents per share, up 20%. The stock was last trading at a market price of $14.135 falling by 5.325% as at September 5, 2018. It has undergone a performance change of -3.11% over the past 12 months.

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