Disclosure: I own shares in one or more of the stocks mentioned. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Ashtead: taking advantage of shabby peers

By Chris Bailey of Financial Orbit

23 April 2016 05:36

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What characteristics do you like to see in an equity? How about revenue and profit growth, free cash flow generation, relatively modest debt levels, an experienced and sensible management team, taking market share against peers and a good capability this could continue over the next few years? And how about for the icing on the cake: a low valuation and increasing dividend capability?

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Comments

alcira16247

23 April 2016, 09:50

Chris

I strongly agree with your analysis – Ashtead (ASH), is a class company.

Brokers consensus estimate for the year of Net Profits 403.7m EPS 80.1p and Dividend 18.6p are probably on the conservative side considering the recent communications from the company.

Forecasted growth for 2017 also provides investors comfort, with Net Profits 451.9 m EPS 88.7p and another nice hike in the divvy to 20.7p – What’s not to like?

Maintaining health operating margins in excess of 26%, an impressive earnings record plus a progressive dividend policy, Ashtead is well run company with strong financial controls and management that actually deserve their money!