05/07/2024 09:24

Metcash Ltd (MTS) $3.59

MTS delivered a mixed result in late June, which has seen the stock trade down towards fresh 3-year lows. The bright spot was a dividend of 8.5 cents for the half, which took the full-year dividend to 19.5 cents, putting the stock on a fully franked yield of around 5.5%. Hardware is the most cyclical MTS division.

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24/06/2024 17:14

Metcash (MTS) $3.69

MTS -2.38%: A mixed result for MTS today, with FY24 Sales of $18.2bn up +0.7% for the year and inline with consensus and this dropped down to reported Net Profit After tax (NPAT) of $257.2m, down -0.7%, and around 4% below consensus. The dividend of 8.5cps for the half took the full year dividend to 19.5cps, which was slightly ahead of the streets 19.1cps expected.

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31/05/2024 09:18

Metcash Ltd (MTS) $3.69

We have delved into MTS a few times in 2024; it continues to be a stock we like and hold. Our more positive outlook on MTS is 3-fold.

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02/05/2024 09:41

Metcash Ltd (MTS) $3.84

We discussed MTS at length in mid-March; it’s a stock we like and hold, with our positive view predicated on the growing proportion of earnings coming from higher growth areas such as Hardware.

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13/03/2024 09:20

Metcash Ltd (MTS) $3.93

MTS held a well-attended investor day yesterday, which speaks to the increasing interest in the stock. Tuesday was company presentations, putting more meat on the bones of their strategy, while today will be site visits, probably less well attended! We’ve owned MTS in the Income Portfolio since 2020, and we think the business has improved over that time and should be trading on a higher multiple of a growing earnings stream.

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07/02/2024 09:25

Metcash (MTS) $3.58

MTS this week confirmed the acquisition of three additional businesses for ~$578m that we think complement their existing operations and are consistent with their strategy in food and hardware. The purchases are being funded by a combination of debt ($278m) & equity ($300m) issued at an 8% discount to the pre-deal market price ($3.35).

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05/02/2024 16:37

Metcash (MTS) $3.64

Shares remained in a trading halt today after Metcash confirmed that it has entered into binding agreements to acquire Superior Food with for up to $412.3m, Bianco Construction Supplies (82.2m) and Alpine Truss ($64m) in a ~$560m deal, that will be funded via a $300m institutional placement at $3.35 (8% discount) and a $25m share purchase plan (SPP) at the same level.

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02/02/2024 09:11

Metcash Ltd (MTS) $3.64

Yesterday, Metcash (MTS) confirmed its bid for Quadrant’s Superior Food Group, which supplies packaging and cleaning products to restaurants, cafes, etc. Although no official announcement has yet been made, the company is a long-standing target of MTS, with a likely purchase price of ~$500mn.

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15/12/2023 09:34

Metcash Ltd (MTS) $3.47

MTS fell -3.1 % on Thursday as the defensive Consumer Staples Sector underperformed the index, but in this case, all of the fall was the stock trading ex-dividend 11c fully franked – MTS is forecast to yield ~6.3% over the next 12-months. We discussed the MTS result last week, concluding that we had turned more neutral on the stock following its 1H24 result.

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06/12/2023 09:19

Metcash (MTS) $3.52

Metcash (MTS) has three main areas to their business: food, liquor and hardware, and this week’s 1H24 result showed some interesting trends we should be across, both in terms of our holding in Metcash and more broadly. Food and liquor were solid as inflationary pressures eased. Food inflation in the 1Q was running at 7.7%, which slowed to 5.3% in the 2Q.

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