oldjoe1
31 Jul 2015
SMDS Fundies Look Cheap... SMDS Broker Buys and fundies..... forward P/E of just over 15 for 2016 looks far too cheap historicaly to me. Smith (DS) PLCFORECASTS2016 2017Date Rec Pre-tax (£
EPS (p) DPS (p) Pre-tax (£ EPS (p) DPS (p)Davy Stockbrokers30-07-15 None 26.00 12.00 26.00 13.00Canaccord Genuity Ltd25-06-15 BUY 309.00 25.00 12.10 333.00 26.90 13.30Investec Securities [R]15-06-15 BUY 315.50 25.63 12.00 346.30 28.07 12.50Westhouse Securities18-12-14 BUY2016 2017Pre-tax (£ EPS (p) DPS (p) Pre-tax (£ EPS (p) DPS (p)Consensus 338.02 27.34 12.911 Month Change -0.27 0.05 0.003 Month Change -5.05 -0.47 -0.06GROWTH2015 (A) 2016 (E) 2017 (E)Norm. EPS 13.64% 27.49% 5.67%DPS 25.00% 20.36% 7.24%INVESTMENT RATIOS2015 (A) 2016 (E) 2017 (E)EBITDA £442.00m £491.98m £511.18mEBIT £279.00m £308.53m £322.95mDividend Yield 2.54% 3.06% 3.28%Dividend Cover 2.03x 2.15x 2.12x<b>PER 19.37x 15.19x 14.38x</b>PEG 1.42f 0.55f 2.54fNet Asset Value PS 17.11p 119.02p 126.55p
oldjoe1
31 Jul 2015
SMDS Chart Very Bullish............. SMDS Smith (DS) PLCIn a lovely uptrend channel with momentum behind it. RSI in a neutral position with plenty upside left. Technical target SP 460p initially. SP riding above short term moving averages.[link]
tejo
29 Jun 2015
euro hit Further to my post on Saturday, the fall in the euro to-day will be another hit on profits unless it recovers. SP up to-day which shows investors love smds despite potential problems!
nk1999
28 Jun 2015
Re: Telegraph Questor Buy Recommendation Some further details:"The Questor Column
rofits jump 20% higher at DS Smith: DS Smith reported a 20% jump in pretax profits and rewarded investors with an inflation beating increase in the annual dividend. And there is every reason to think this steady performer can continue to pack a punch. The FTSE 250-listed packaging group experienced a surge in cash generation, which funded two acquisitions within the past few months, and Questor thinks the expansion, and an upgrade to the profit outlook, underpins the long-term investment story. DS Smith generates about 65% of its earnings in Europe, while more than 70% of its revenue comes from outside the U.K. The company makes cardboard packaging from wood fibre and from recycling its customers used boxes. The company announced another bolt-on acquisition with a €190 m (£136 m) deal for Grupo Lantero that will give it control over 10% of the Spanish packaging market. The deal comes after a smaller €35 m purchase of Grupo Andopack in Spain last November. DS Smith and packaging is not without its risks as it has a history of being a very cyclical business. But the company is growing earnings and the dividend by double digits, while the strong balance sheet also provides options for growth or returns. DS Smith at 390.5p+14.5p. Questor says “Buy.” "
tejo
27 Jun 2015
Results Thank you Boring BernieLet me repeat that I like the company and think that it has performed well, however, the net results are not nearly as good as they first appear. I can understand the company putting the best appearance forward BUTIf you look at the balance sheet, you can see that the Shareholders Equity has gone down by £103 million and that there is a negative working capital [position. Looking further at the statement of comprehensive income,, the profit in reality turns into a loss.All the figures that are shown in the headline statement are before exceptional items and at constant currency rates of exchange. However, exceptional items are a recurrent feature and will occur again next year. Constant currency is fine for comparison purposes at an operating level, but it is actual exchange rates that are the reality. Other losses, eg pension fund liability have been charged to reserves which is standard practice but is a long term cost none the less.Questor in The Telegraph is a consistent fan, and so am I but the figures need to be understood. Let us hope the euro rises next year.Hope that this explains my previous comments..
geta4tune
26 Jun 2015
Telegraph Questor Buy Recommendation DS Smith received a buy recommendation in today's Telegraph."...the company is growing earnings and the dividend by double digits, while the strong balance sheet also provides options for growth or returns. Buy."
Boring Bernie
25 Jun 2015
Re: currency impact Re "... and after exceptional items the profit is more or less the same as last year"I'm missing something obvious then tejo ?Exceptionals this year were 51 million as opposed to 41 for the previous yearPBT - after exceptionals were 200 and 167 million respectively, but, cutting out discontinued operations they were 156 and 141 millioneps after exceptionals rose to 16.6 from 15.3p, so up about 10% or so ?You're spot on about the currency effect though. Going forward a lot will depend on whether that starts to move into the other direction or not and, to be fair, that doesn't look overly likely at the moment, but, if it did, it'd do our cashflow no harm at all.Mid you, I think we're at the higher end of fair value at the moment and, if Creamybib's target of 450p was hit in the next six months I'd be sorely tempted to take some profits
tejo
25 Jun 2015
currency impact I am not sure the results are as good as they appear at first sight. There was a substantial hit on currency which one only really sees on the statement of comprehensive income and after exceptional items the profit is more or less the same as last year. In fact. the value of the shareholders equity appears to have fallen Still a good company but sp ahead of itself I feel.
Misty Creamybib
25 Jun 2015
Price breakout Following the results we have a price break out.The acquisition should add value but based on current estimates the PE is now moving towards 13.Worth holding on to but ready to take my profits which sit at 165% since 2011 at nearer 450pGLTA
Boring Bernie
13 Apr 2015
Re: Years High sp Variety of reasons.The only one which might not be immediately obvious is the possible bid for Smurfit Kappa by Internationalcould be making people think of us as a company which might be taken over at some time ?[link]
raptor66
13 Apr 2015
Years High sp Anybody got news on this sp rise??
albent
08 Apr 2015
DS Smith infographic DS Smith (LSE:SMDS): [link] valuation info.
tejo
12 Mar 2015
Re: impact of very weak dollar Yes, that is true and I was thinking more of protecting the net cash flow back to the UK.. which is needed, of course, to pay the dividend.
oggs
12 Mar 2015
Re: Impact of very weak euro Thinking the same. No idea but I'd be surprised if it was completely hedged because clearly they have a lot of liabilities in € so hedging everything back to Sterling would be a risk in itself.
tejo
12 Mar 2015
Impact of very weak euro Does anyone know whether Smith has any currency hedges in place, please? I am very concerned that the excellent operating performance is going to be wiped out by adverse currency movements due to the collapsing euro. Loathe to sell but maybe the best straegy and buy back later? Views most welcome.
