Operating free cashflow margin turned positive again in the last 12 months, at 2.7 % — and actually jumped to 15.3 % (similar to
average peak margins) in their most recent interims.
Not exact matches
As detailed above (and also see previous DCC notes / commentary I highlighted), the (3,078 M Rev * 1.125 P / S) comes from H2 - 2015 revenue run - rate & an 11.3 % trading
margin (an
average of current 9.4 %
margin &
peak 13.3 %
margin, as I'm pretty confident KGP will re-attain this
peak margin again).
Let's just
average»em out, to arrive at a 15.5 %
peak margin.
stock, and I'm reasonably confident it will revert to their
peak /
average Operating Profit
Margins, I'll actually price it at a P / S Ratio that reflects an
average of current and
peak (or LT
average)
Margins.
Thanks to unusually high debt levels and unusually low labor compensation in recent years, the earnings
peak in 2007 was based on profit
margins that were about 50 % above the historical
average, and which have now collapsed.
It has also published today its latest report on prices which shows that the
average dual fuel bill now stands at # 1,345 and, following recent price rises, estimated suppliers»
margins have
peaked at around # 125 per year, but are likely to fall back next year.