Join our community of smart investors

Tap into a discount cash generator

This little known company is benefitting from the booming discount retail sector.
Tap into a discount cash generator
  • Asset light and scalable business model
  • Strong free cash flow underpins forecast 50 per cent pay-out ratio

This asset light and highly cash generative business not only offers investors robust prospects of dividend growth in the years ahead, but strong earnings growth, too.

Earnings per share are forecast to increase by 30 per cent over the next two financial years, driven by growth in the company's market leading vaping business and a fast growing sports nutrition and vitamin operation. The earnings risk looks skewed to the upside, making the current price a decent entry point and one that could potentially deliver 30 per cent shareholder return over the next 12 months as the ratings discount with peers starts to narrow.

To continue reading...
Subscribe to Alpha Today and You’ll Get
  • Unlimited access to all of our content
  • The Analyst's round up of companies and updates on his Fantasy Sipp portfolio
  • Broker style company research notes from our small cap expert Simon Thompson
  • Quality, Momentum, Growth at Reasonable Price (GARP) and Dividend Yield stock screens
  • Algy Hall’s monthly value-momentum investment trust screen and portfolio of diverse closed-end funds
Have an account? Sign in