This week grocery and hardware wholesaler MTS put on a 2-day investor briefing in Adelaide, and the message from the suppliers to IGA, Foodland, Porters Liquor, Mitre 10 & more was solid:
- Strong sales momentum has been maintained in the first half in all segments, with group sales up +7.7% so far for the 23 weeks to October 9 year-on-year, they delivered growth across all three of Metcash’s businesses.
After correcting 23% from its May high MTS is now trading on a 13x valuation for 2023 while it’s estimated to yield 6.3% fully franked over the next 12 months, its next dividend is paid in late December.
- We believe MTS is offering excellent value under $4 from both a yield and value perspective.
MM is bullish and long MTS
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