Just (LON:JUST) was taking another look at this unloved stock today.
Interestingly, a year ago analysts were forecasting a 2025 earnings of 17p......fast forward to now and average consensus is 35p. That means over the last year analysts have been forced to double earnings. That's one helluva change.
So based on that we have a business now on a PER of 3 (wow - tiny) and a TNAV of c. 225p so you're also buying at less than 50p in the £ !!! That seems extreme
Recent trading said operating profit of at least £422m for 2024. Now if we assume 25% tax rate then thats £317m PAT whereas estimates still say £259m so it appears there is a strong beat coming? Does that make 2024 EPS 38p potentially? or a PER of 2.8p for this year.......... we have close to 200% capital coverage
Now how much of that 38p adds to TNAV? even if only 20p it should put TNAV up to maybe 245p versus a 107p current share price.
So main detractor is that whilst dividends have been resumed and growing at 20% p/a it is still only 2.5% on a forward basis - perhaps if they doubled that to 5p or c. 5% it would help and given cash generation I'd hope the board would be considering this.
