Warren Buffett, the great investor had shared his view on diversification of stocks, which implies that it safeguards an investor against ignorance. Also, it makes a bit of sense when a person is aware of what he/she is doing.
Let’s now go through the three stocks: BAP, CAR & DOW, each belonging to a different sector and understand their business operations, financial & stock performance.
Bapcor Limited (ASX: BAP)
Consumer discretionary related company, Bapcor Limited (ASX: BAP) is a provider of accessories, vehicle parts, equipment associated with automotive, along with automotive aftermarket parts and services. BAP has a presence in nearly 1,000 locations spread across Australia, New Zealand and Thailand.
H1 FY 2020 Results:
On 12 February 2020, Bapcor released its first half year FY 2020 result for the period ended 31 December 2019. Mentioned below are key highlights from the results of H1 FY 2020.
- Revenue grew by10.4 percent pcp, from $636.1 million to $702.5 million
- Statutory EBITDA was $106.1 million, with an increase of 33.6 percent on pcp
- Statutory NPAT stood at $45.2 million, reflecting a decrease of 0.7 percent on pcp
- Statutory EPS decreased by 1.8 percent on pcp to 15.91 cents per share
Below are two of the Company’s acquisitions which attributed to its growth:
On 1 November 2019, BAP notified the market that it has entered into an agreement to acquire two companies, namely - Truckline and Diesel Drive. The total purchase price was around $48 million.
- Truckline, with a revenue of $100 million aims to expand BAP’s heavy commercial business further. Currently, Bapcor has a modest wholesale presence via its specialty wholesale division,
- Diesel Drive, with a revenue of $13 million aims to further boost BAP’s existing footprint of Japanese commercial truck spare parts.
On 12 February 2020, BAP made a new announcement about the release of its dividend distribution for H1 FY 2020 for the period ended 31 December 2019.
- In HY 2020, the six-period dividend declared amounts to 8 cents per share which is fully franked, reflecting an increase of 6.7 percent. While considering the same period in FY 2019, the dividend was of 7.5 cents per share.
- The record date and payment date of the dividend/distribution will be 18 February 2020 and 13 March 2020, respectively.
Stock performance of BAP:
On 13 February 2020, the stock of BAP was trading at $6.985, moving down by 1.758 percent (at AEDT 1:53 PM). Also, BAP’s outstanding market shares were approximately 284.54 million, with a market capitalisation of nearly $2.02 billion. While the 52 weeks low and high price of the stock was noted at $ 5.32 and $ 7.525, respectively. The stock has delivered a positive return of 16.56 percent and 10.75 percent in the last six months and one-year span, respectively.
carsales.com Limited (ASX: CAR)
ASX- listed company, carsales.com Ltd (ASX: CAR) is into the business of online motorcycle, automotive and marine classifieds in the Australian region. It provides a platform to sell or buy motorcycles, cars, trucks, boats and caravans.
Along with its subsidiaries, CAR provides employment to more than 600 people in Australia with operations across the Asia Pacific region. CAR has interests in leading automotive classified businesses present in countries such as Argentina, Brazil, Chile, Colombia, Mexico and South Korea.
To drive the business around the globe, CAR develops technology and advertising solutions such as New tyresales website, New LiveMarket, My Feed and others.
On 12 February 2020, CAR declared dividend and its first half yearly results for FY 2020 for the period ending 31 December 2019.
- The dividend distribution amounts to 22 cents per share which is fully franked. It reflects a 7 percent increase on pcp.
- The record date of the dividend/distribution is of 19 March 2020, followed by the payment date which is of 15 April 2020.
- Revenue grew by 5 percent pcp, from $205 million to $214 million.
- Adjusted EBITDA was $107 million, with an increase of 6 percent on pcp.
- Similarly, Adjusted NPAT stood at $63 million which is up by 7 percent on pcp.
- Brazil, Korea and Mexico contributed significantly in the revenue from international business
Stock performance of CAR:
On 13 February 2020, the stock of CAR was trading at $ 19.02, moving downwards by 0.367 percent (at AEDT 2:05 PM). CAR’s outstanding market shares were of approximately 245.25 million and a market capitalisation of nearly $4.68 billion. While the 52 weeks low and high price of the stock was noted at $ 11.020 and $ 19.6, respectively. The stock has delivered a positive return of 32.57 percent and 56.73 percent in the last six months and one-year span, respectively.
Downer EDI Limited (ASX: DOW)
An integrated services provider, Downer EDI Limited (ASX: DOW) designs, builds and sustains infrastructure, assets and facilities in Australia and New Zealand. Also, Downer has five service lines namely -Transport, Utilities, Facilities, Mining, and Engineering, Construction & Maintenance.
DOW has nearly 53,000 employees mainly in Australia and New Zealand region, apart from Asia-Pacific, Southern Africa and South America regions.
On 12 February 2020, DOW came out with its H1 FY 2020 results and announcement of dividend distribution relating to the six months period ended 31 December 2019.
- In HY 2020, the six-period dividend declared amounts to 14 cents per share which is not franked. While considering the dividend in HY 2019, the amount remains the same, however, it was 50 percent franked then.
- The record date and payment date of HY 2020 will be 26 February 2020 and 25 March 2020, respectively.
HY 2020 Financial Results:
- Total revenue was $6.8 billion, up 3.3 percent rising by $215.5 million on pcp.
- EBITA and EBIT decreased by 19.9 percent and 23.8 percent, respectively on pcp.
- Statutory net profit after tax was noted at $91.4 million, with a decrease of 35.4 percent.
Response to Media Speculation:
On 5 February 2020, Perenti Global Limited (ASX: PRN) responded to a media speculation about the sale of DOW’s oil and gas sector-related operations and PRN being a potential buyer in this process. Following this, on 11 February 2020, DOW also responded that it has not given any consideration to the sale and confirmed that his business is not for sale.
Stock performance of DOW:
On 13 February 2020, the stock of DOW was trading at $7.010, moving downwards by 3.576 percent (at AEDT 2:21 PM). DOW’s outstanding market shares were of approximately 594.7 million and a market capitalisation of nearly $ 4.32 billion. While the 52 weeks low and high price of the stock was noted at $ 6.45 and $ 8.94, respectively. The stock has delivered a positive return of 1.49 percent and 0.83 percent in the last six months and one-year span, respectively.
This website is a service of Kalkine Media Pty. Ltd. A.C.N. 629 651 672. The website has been prepared for informational purposes only and is not intended to be used as a complete source of information on any particular company. Kalkine Media does not in any way endorse or recommend individuals, products or services that may be discussed on this site. Our publications are NOT a solicitation or recommendation to buy, sell or hold. We are neither licensed nor qualified to provide investment advice.
There is no investor left unperturbed with the ongoing trade conflicts between US-China and the devastating bushfire in Australia.
Are you wondering if the year 2020 might not have taken the right start? Dividend stocks could be the answer to that question.
As interest rates in Australia are already at record low levels, find out which dividend stocks are viewed as the most attractive investment opportunity in the current scenario in our report.