How Have Investors Looked At These 2 Industrial Stocks - DOW And BIN

  • Mar 23, 2019 AEDT
  • Team Kalkine
How Have Investors Looked At These 2 Industrial Stocks - DOW And BIN

Downer EDI Limited (ASX: DOW) and Bingo Industries Limited (ASX: BIN) are two well-known companies in the industrials sector.

Downer EDI Limited has recently announced about its changes in the shareholding update while Bingo Industries Limited announced about its share buy-back event. Let’s see how the two companies performed in their half-yearly results for FY2019 and expectations in the forthcoming year.

Downer EDI Limited (ASX: DOW)

Downer EDI Limited (ASX: DOW) recently announced a change in its shareholding where Vinva Investment Management and Ausbil Investment Management Limited ceased to be substantial holders in Downer EDI from February 18, 2019, and February 7, 2019, respectively.

In its half-yearly result, it reported an increase in its total revenue including joint ventures and other income by 8.6% pcp to $6.6 Bn in H1FY19. This was due to an increase in its Transport revenue by 0.8% to $2.1 Bn, Utilities revenue up by 27.5% to $1.2 Bn, EC&M revenue up by 34.1% to $945.1 Mn, Mining revenue up by 3.6% to $714.2 Mn, and Facilities revenue down by 2.8% to $1.7 Bn.

Its EBITA of acquired intangible assets increased by 222.9% pcp to $268 Mn. Its NPAT attributable to members of parent entity increased by 1309% pcp to $134.2 Mn.

It distributed an amount of $0.14 per share with payment date on March 21, 2019, and record date on February 21, 2019.

The company has increased its NPATA of acquired intangible assets’ guidance for FY2019 to $352 Mn. It is under the consideration of the fair value gain of $17 Mn from the acquisition of the remaining 50% interest of the Downer Mouchel Joint Venture (JV) in the late first Half of FY19.

At the time of writing (22 March 2019 AEST 01:41 PM), the share price of DOW is trading at $7.710 (up 0.13% intraday) with the market capitalization of ~$4.58 Bn. As per the Australian Securities Exchange, the earnings per share (or EPS) of Downer EDI Limited stood at -A$0.002. It is trading at PE multiple of 21.41x with a dividend yield of 3.64%. The stock has provided a YTD return of 15.87% & also posted returns of 20.56% and 6.03% over the past three months, and the one month respectively.


Bingo Industries Limited (ASX: BIN)

Bingo Industries Limited (ASX: BIN) recently announced a change in its director’s interest in the company. Recently, one of its Director, Barry Buffer acquired 10,000 additional shares with a value of $16,950.

As per announcement on March 22, 2019, the group received a green signal from the Australian Competition and Consumer Commission (“ACCC”) for its proposed acquisition of Dial A Dump Industries (“DADI”), after accepting a court-enforceable undertaking from BINGO to divest its recycling facility in Banksmeadow, NSW.

In its half-yearly result, it reported an increase in its net revenue by 25.4% pcp to $178.7 Mn in H1FY19. Its underlying EBITDA increased by 4.1% pcp to $45.6 Mn. Its underlying NPATA increased by 3.8% pcp to $23 Mn. Its operating cash flow was reported at $47.2 Mn (increased of 33% pcp). Based on 1HFY19 performance, the Board of directors declared an interim dividend of 1.72 cents per share, and it will be paid on 28 March 2019.

Bingo expects the construction market in NSW and Victoria will deliver overall volumes of $130 billion per annum over the next few years. It will provide the company with a significant opportunity to increase its market share in the C&I sector. It is expected that QLD levy introduction would be positive for its business. The company expects that an increase in operating costs experienced in FY19 will offset the rise in price in early FY20.

We would see how the company has performed in the recent past. At the time of writing (22 March 2019 AEST 01:41 PM), the share price of BIN is trading at $1.50 with the market capitalization of ~$873.58 Mn. As per the Australian Securities Exchange, the company’s stock price is trading at PE multiple of 19.89x. Talking about the past performance, the stock price of Bingo Industries Limited has delivered the return of -52.08% in the time frame of the previous six months. However, in the time span of the previous month, the stock posted the return of 11.52%. As per the Australian Securities Exchange, the earnings per share (or EPS) of Bingo Industries Limited stood at $0.075.


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