The Group has reported another record year of results, broadly in line with our forecasts. PBT increased by 15%, EPS by 14% and DPS by 12%. ROCE was maintained above 15% despite an increase in impairment and a competitive end market. The Group’s market leading ROE of c.18% is undervalued at 1.2x FY20 P/B, in our view. We reiterate our target price of £25.50, which is still a modest 1.7x P/B. The valuation is well supported by a 6.9% dividend yield.
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FY19 results
S&U plc (SUS:LON) | 1,998 0 0.0% | Mkt Cap: 242.7m
- Published:
26 Mar 2019 -
Author:
Michael White -
Pages:
5
The Group has reported another record year of results, broadly in line with our forecasts. PBT increased by 15%, EPS by 14% and DPS by 12%. ROCE was maintained above 15% despite an increase in impairment and a competitive end market. The Group’s market leading ROE of c.18% is undervalued at 1.2x FY20 P/B, in our view. We reiterate our target price of £25.50, which is still a modest 1.7x P/B. The valuation is well supported by a 6.9% dividend yield.