Latest Updates On Ferguson Plc, Just Eat Plc and Lufthansa AG

  • Aug 28, 2019 BST
  • Team Kalkine
Latest Updates On Ferguson Plc, Just Eat Plc and Lufthansa AG

Ferguson Plc

Ferguson Plc is a British multinational company engaged in plumbing and heating accessories business. The company has its business located across three geographies of United Kingdom, Canada and The United States of America and it operates in these geographies with the brand names Ferguson Enterprises (in the United States of America), Wolseley (in the United Kingdom and Canada) and William Wilson (in the United Kingdom).

The company was founded in 1887 and has its headquarters in Winnersh Triangle in the United Kingdom. The shares of the company are listed for trading at the London Stock Exchange with the ticker name FERG. The company is also a component of the FTSE 100 index.

Recent News Update

The company on 10 June 2019 came out with its third-quarter results summary for the three months period ended 30 April 2019. The revenues of the company are up 6.2 per cent, and trading profits are up 2.3 per cent compared to the corresponding quarter ending 30 April 2018.

The company on the day also announced a share buy-back of US $500 million, backed by continued robust growth.

Financial Updates from company’s H1 Half-yearly Result Statement published on 26 March 2019

On 26 March 2019, the company had come out with its first-half 2019 financial results for the financial year 2019-20. The revenues for the half-year period ended 31 January 2019 was $ 10.847 billion while it was $10.027 billion for the corresponding half-year period ending 31 January 2018. The gross-profits for the six-months period ended 31 January 2019 was $3.193 billion whereas it was $2.94 billion for the corresponding six-month period ending 31 January 2018. The operating profit for the company for the half-year period ending 31 January 2019 was $709 million, and for the half-year period ending 31 January 2018, it was $622 million. The profit for the period attributable to shareholders of the company for the half-year ending 31 January 2019 was $586 million whereas it as $458 million for the half-year period ending on 31 January 2018. The earnings per share attributable to the shareholders of the company both from continuing and discontinued operations (diluted) for the six-month period ending 31 January 2019 was 252.8 cents while the earnings per share attributable to the shareholders of the company both from continuing and discontinued operations (diluted)for the six-month period ending 31 January 2018 was 182.0 cents.

The company proposed to pay an interim dividend of 63.1 cents to be paid to the shareholders on 30 April 2019, whose names appear in the register on the company as on 5 April 2019. (Dividend not included as a liability in the balance sheet as on 31 January 2019)

Source – Company Half-yearly report published on 26 March 2019

Stock Price performance at the London stock exchange (YTD)

(Comparative chart of FERG with the FTSE 100 index, Source – Thomson Reuters)

The stock price of Ferguson Plc had been moving in consonance with the FTSE 100 index from 1 January 2019 till about mid of June 2019 with a minor dip in mid-March, from then on it has started to outperform the market and has been continuing to do so till the time of preparation of this report on 28 August 2019.

Stock performance at the London stock exchange over the past 5 trading days

Price Chart as on 28 August 2019, before the market close (Source: Thomson Reuters)

On 28 August 2019, at the time of writing of the report (before the market close, GMT 09.56 AM), FERG shares were trading on the London Stock Exchange at GBX 5854.00. Between 23 August 2019 and 27 August 2019, the prices of the stock registered a sharp fall followed by a minor recovery to reach to the current levels it is on 28 August 2019 at the time of writing of this report.

Outlook

The company has surplus cash- flow with no immediate re-investment needs; hence it is proposing a buy-back of shares worth $500 million. The move does little to create value for its customers, and the company would do good; it conducts a strategic review of its business and identify opportunities to venture and expand.

Just Eat Plc

Just Eat Plc is an online food order and delivery service company based in UK. It provides an online marketing platform for independent food take-out joints on the one hand, and for customers, it provides the convenience of choosing between multiple foods take-out service vendors, placing order online and receiving the delivery. The company divides it business into five market segments namely, the United Kingdom market, the Australian market, the New Zealand market, Established markets (Benelux, Canada, Denmark, France, Ireland, Norway and Switzerland) and Developing markets (Italy, Mexico and Spain).

The company’s shares are listed for trading on the London Stock Exchange where they trade with the ticker name JE. The company’s shares are also components of the FTSE 100 Index.

Recent News Update

The company’s counter is abuzz with speculations doing the rounds of a takeover bid by Rival company Takeaway.com. Most of company’s investors holding more than 1 per cent of shares in the company have been making a declaration of their holdings via 8.3 disclosure forms as required by United Kingdom capital market regulations.

Financial Updates from company’s Half-yearly Result Statement published on 31 July 2019.

On 31 July 2019, the company had come out with its first-half financial results for the financial year 2019-20. The revenue of the company for the six-month period ended 30 June 2019 was £464.5 million while for the six-month period ended 30 June 2018 it was £358.4 million. The gross profit of the company for the half-year period ending 30 June 2019 was £289.1 million while it was £265.3 million for the half-year period ended 30 June 2018. The operating profit for the six-month period ended 30 June 2019 was £23.7 million and for the six-month period ended 30 June 2018 it was £45.7 million. The loss for the half-year period ending 30 June 2019 for the company was £8.8 million whereas for the half-year period ending 30 June 2018 the company earned a profit of £36.2 million. The loss per ordinary share on a diluted basis for the half-year period ended 30 June 2019 was 0.8 pence per share against an earnings per ordinary share of 5.4 pence for the period ending 30 June 2018.

Source – Company Half-yearly report published on 31 July 2019

Stock Price performance at the London stock exchange (YTD)

(Comparative chart of JE with the FTSE 100 index, Source – Thomson Reuters)

The stock price of Just Eat Plc has been outperforming the FTSE 100 index since 1 January 2019 and did so till the first week of May 2019, after which it performed in consonance with the market till mid of July 2019 and has again started outperforming the market ever since till the time of writing of this report on 28 August 2019.

Stock performance at the London stock exchange over the past 5 trading days

Price Chart as on 28 August 2019, before the market close (Source: Thomson Reuters)

On 28 August 2019, at the time of writing of the report (before the market close, GMT 11.55 AM), JE shares were trading on the London Stock Exchange at GBX 756.60. Between 23 August 2019 and 27 August 2019, the price of the stock registered a sharp fall followed by a minor recovery to reach to the current levels it is on 28 August 2019 at the time of writing of this report.

Outlook

There have been many a prospective buyer lining up for the company in recent months, with takeaway.com being the frontrunner. Whichever way the deal goes, it will create a large multinational entity in the online food delivery business with no near rivals.

Lufthansa AG

Lufthansa AG is the erstwhile flag carrier airline of Germany; it is the largest airline in Germany today, and the largest in Europe in terms of passengers served. The company owns four subsidiary airlines namely Austrian Airlines, Swiss International Airlines, Brussels Airlines and Eurowings; other than that its technical arm, catering arm and cargo handling arms have also been made subsidiary companies namely Lufthansa Technik, LSG Sky Chefs Lufthansa Cargo AG.

The company’s shares are primarily listed on the berlin Stock Exchange for trading where they trade with the ticker name LHA, it is also traded in the Frankfurt stock exchange with the same ticker name, where it is a part of the DAX index.

Recent News Update

The company published its first half-yearly results for the financial year 2019-20 recently. The company’s adjusted EBITDA is down 60 per cent, amidst high operating expenditure on account of higher fuel costs. The company blames the price war going on in Europe as the reason for this poor performance.

Financial Updates from company’s H1 Half-yearly Result Statement

The company’s total revenue for the six-month period ending 30 June 2019 was €17.523 billion, and for the corresponding six-month period ending 30 June 2018, the revenue was €16.938 billion. The company’s net loss attributable to shareholders for half-year ended 30 June 2019 was € 116 million, while for half-year ending period 30 June 2018 it was a profit of €713 million. The diluted loss per share for the six-month period ended 30 June 2019 was 0.24 cents while for the six-month period ended 30 June 2019 it was 1.51 cents.

Source – Company Half-yearly report

Stock Price performance at the Frankfurt stock exchange (YTD)

(Comparative chart of LHA with the DAX index YTD, Source – Thomson Reuters)

The stock price of Lufthansa AG moved in consonance with the DAX index since 1 January 2019 till the mid of April 2019, since then it has been underperforming the index and has been doing so till the time of writing of this report on 28 August 2019.

Stock performance at the London stock exchange over the past 5 trading days

Daily Chart as on 28 August 2019, before the market close (Source: Thomson Reuters)

On 28 August 2019, at the time of writing of the report (before the market close, GMT 01.54 PM), LHA shares were trading on the Frankfurt Stock Exchange at €13.685. Between 22 August 2019 and 28 August 2019, the price of the stock registered a steady increase before consolidating to the current levels it is on 28 August 2019 at the time of writing of this report.

Outlook

The company is suffering from the economic turmoil facing the eurozone at large. The high fuel cost situation is a result of this phenomenon only. The following financial year will also be challenging for the company as the situation in eurozone is not showing any signs of abatement.

With Bank of England reducing the interest rates to a historic low level, the spotlight is back on diverse investment opportunities. 

Amidst this, are you getting worried about these falling interest rates and wondering where to put your money?

Well! Team Kalkine has a solution for you. You still can earn a relatively stable income by putting money in the dividend-paying stocks.

We think it is the perfect time when you should start accumulating selective dividend stocks to beat the low-interest rates, while we provide a tailored offering in view of valuable stock opportunities and any dividend cut backs to be considered amid scenarios including a prolonged market meltdown.

To know more about these dividend stocks, click here

CLICK HERE FOR YOUR FREE REPORT!
   
x
We use cookies to ensure that we give you the best experience on our website. If you continue to use this site we will assume that you are happy with it. OK