Author: therawinformant

The Straker Translations Ltd (ASX: STG) share price has been an exceptionally strong performer on Wednesday.

In early trade the translation platform provider’s shares were up a massive 37% to $1.24.

Why is the Straker share price rocketing higher today?

Investors have been fighting to get hold of the company’s shares this morning after it announced a major deal with global tech giant International Business Machines Corporation (IBM).

According to the release, IBM has appointed the company as a strategic translation service provider on a two-year agreement. This agreement commences in January and comes with an option for an additional two years.

The agreement will see Straker support IBM Cloud Services, IBM Adaptive Translations Services, and IBM Global Media Localisation.

It also extends the company’s current relationship with IBM from one language (Spanish) to 55 languages. This includes a number of key popular languages such as French, Chinese, Portuguese, and Japanese.

The agreement will utilise Straker’s proprietary artificial intelligence-powered RAY platform by directly linking with IBM’s technology platforms.

Straker Translations’ CEO and Co-Founder, Grant Straker, commented: “We are thrilled to have secured this strategic agreement with IBM, and further build our existing relationship with a world leader in data management, software, artificial intelligence and cognitive computing.”

“Our industry, like almost every other, is being fundamentally changed by the accelerating use of AI across all facets of localisation. The agreement requires extensive integration with IBM and the opportunity to build a deep partnership with the world’s leading AI company is hugely exciting. We expect it will open up new opportunities for us to partner on innovation within our industry,” he added.

What is the deal worth?

Due to the nature of the agreement, management advised that it is not possible to quantify the potential revenue that will be generated from IBM.

This is because such financial effect can only be determined over time based on usage volume. However, it notes that historically, the contribution from IBM related translation services has been a material contributor to company revenue.

In addition to this, management advised that the expanded scope means the company anticipates a ~30% increase in its headcount to support future service provision.

More reading

• Computershare (ASX:CPU) share price higher after AGM
• CBA (ASX:CBA) share price lifts on first quarter results
• Why the Galaxy (ASX:GXY) share price could push higher
• Eclipx (ASX:ECX) share price higher on FY 2020 results release
• Why the Douugh (ASX:DOU) share price is storming 16% higher today

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Straker Translations. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the Straker Translations (ASX:STG) share price is rocketing 37% higher today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2UbG53P

Shares registry provider Computershare Limited (ASX: CPU) announced results and issued guidance for FY21 at its annual general meeting (AGM) today. Computershare’s share price rose by 4.58% to $14.17 in early morning trading, amid a broader market rise.

Highlights from the AGM

Note that due the nature of its business, Computershare has always reported its results in US dollars.

• Revenue US$2.3 billion, down 1.9%
• Margin income US$201 million, down 18.3%
• Management (non-audited) earnings before interest, depreciation, and tax (EBITDA) US$650 million, down 3.7%
• Management (non-audited) earnings per share (EPS) 56.3 cents, down 19.8%
• Final dividend per share 23 cents, unchanged
• The company did not reduce headcount during pandemic

Computershare has two main sources of revenues – fees from shares registry and margin income from holding client balances. The company says that as central banks around the world reduced interest rates rapidly, it has significantly impacted its margin income, which explains the 18.3% decrease. As such, management emphasises that investors should view the contribution from margin income independently as that income is impacted by cash deposit yields which are largely outside of the company’s control. 

Guidance for FY21

Computershare announced that for the first four months of this financial year, it’s trading slightly ahead of expectations. 

It expects management earnings per share (EPS) to be down by around 11% in FY21, and expects profit split between the first and second half to be a little more even compared to FY20 when the coronavirus pandemic ravaged the first half of earnings. However, the company says it will not upgrade its FY21 outlook due to the prevailing uncertainties caused by COVID-19.

A bit about Computershare

Computershare is the largest share registry business in the world. The company also provides services in employee equity plans, corporate trust, mortgage, bankruptcy, and a range of other financial and governance services. It manages more than 75 million customer records across all of the major financial markets.

Computershare is the most common share registry used by Australian companies listed on the ASX. Therefore, many Aussie investors hold an account with Computershare to manage information and preferences, access distribution statements, and carry out several other functions.

Quick take on its business

As explained previously, Computershare has a material risk exposure to interest rates by virtue of the interest it earns on client-owned cash balances – its margin income. According to its financial statements as at 30 June, the company held USD$17 billion in client funds across different currencies. As such, the company is also exposed to currency movements risk, particularly the AUD/USD exchange rate.

Margin income represents around 30% of group EBITDA, and its registry business accounts for more than 50%. 

In recent years, the company has attempted to expand outside of the share registry sector by making acquisitions across different industries, such as the mortgage industry. Between 2012 and 2020, acquisition-related costs averaged around US$80 million per year, according to its reports. 

Management has often spoken about the 99% retention rate of its registry clients, as there is a low propensity to switch share registry providers by companies due to potential operational risks.

How has the Computershare share price performed in 2020?

The Computershare share price has lost 20% on a year-to-date basis. It started the year at $16.78, and went through a rough patch in March as its price plunged to $8.60. It has since recovered to today’s price at $14.12. At this price, Computershare commands a market cap of $7.3 billion.

More reading

• 5 things to watch on the ASX 200 on Wednesday
• The 10 ASX stocks worst hit by a Biden US presidential election win
• How top ASX tech shares like Afterpay (ASX:APT) have performed in 2020
• 3 ASX tech shares that pay dividends

Motley Fool contributor Eddy Sunarto has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Computershare (ASX:CPU) share price higher after AGM appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3eKmFMT

The Commonwealth Bank of Australia (ASX: CBA) share price has opened today’s trade up 1.77% at $73.68 per share, following the release of the bank’s first quarter FY21 trading update.

How did Commonwealth Bank perform in the first quarter?

For the 3 months ended 30 September, Commonwealth Bank posted an unaudited net profit after tax of $1.8 billion. This represented a fall of 16% from the prior corresponding period.

Volume growth rose across the business for the quarter versus the June period. Home lending increased by $5.6 billion, household deposits jumped to $15.8 billion and business lending lifted to $1.4 billion. This helped offset lower margins and interest rates experienced by the business through COVID-19.

Non-interest income grew 1%, driven by higher global markets trading income and insurance income from lower general insurance claims.

Operating expenses were 2% higher, excluding customer remediation provisions, to $5.2 billion. The outcome was attributed to increased investment spend and staff costs as a result of the pandemic.

The bank remains in a strong capital position. Net stable funding ratio (NSFR) stands at 125% and liquidity coverage ratio (LCR) at 146%, well above regulatory requirements.

Liquid assets totalled over $183 billion at the end of the quarter.

What did management say?

Commonwealth Bank CEO, Mr Matt Comyn, commented on the first-quarter result:

Disciplined execution of our strategy and strong operational performance continued to deliver good outcomes for our stakeholders during the September quarter.

This was highlighted in the quarter by the Bank achieving the number 1 ranking for Net Promoter Scores (NPS) in each of our core businesses (consumer, business and institutional) for the first time, while retaining our leading NPS ranking in digital banking.

He added:

Balance sheet settings remained strong, with loan loss provisioning coverage further strengthened and a CET1 capital ratio of 11.8%, up 20bpts in the quarter notwithstanding the payment of $1.7bn in 2H20 final dividends to our shareholders.

We continue to contact customers with a range of options as they approach the end of temporary loan repayment deferral periods.

About the Commonwealth Bank share price

As expected, the banking industry was hard hit by COVID-19, but has been slowly recovering. The Commonwealth Bank share price fell to as low as $53.44 during the first lockdown, prompting investor concerns. However, the bank has rallied the past few months, sitting just 10% below from where it was at the start of the year.

As Australia’s largest bank, CommBank has a price-to-earnings (P/E) ratio of 13.8.

More reading

• These ASX dividend shares offer 4.5%+ dividend yields
• 5 things to watch on the ASX 200 on Wednesday
• COVID-19 over? Credit and debit card spend surges
• Here are the US shares that CommSec customers are buying
• Why the CBA (ASX:CBA) share price and these ASX stocks could get a $100bn boost

Motley Fool contributor Aaron Teboneras has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post CBA (ASX:CBA) share price lifts on first quarter results appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/38wwVqI

The Galaxy Resources Ltd (ASX: GXY) share price has rebounded almost 50% following the Tesla Inc (NASDAQ: TSLA) battery day back in late September. Today, Galaxy announced a multi-year year offtake agreement with Chengxin Lithium Group Co Ltd. Could this be a turning point for the lithium producer? 

Tesla battery day sparks fears for lithium demand 

A take-home from Tesla’s battery day was when Elon Musk highlighted that lithium was a widely available resource, “one of the most common resources on the planet”, and that “Nevada alone has enough to power all vehicles in the US”.

This dampened the sentiment for lithium producers that hoped to ride the momentum and increasing relevancy of renewable energy and electric vehicles. On battery day alone, the Galaxy share price slumped 13%. 

Biden to accelerate shift to renewable energy 

President-elect Joe Biden plans to act on climate change immediately and ambitiously. This includes plans for a record $400 billion investment over 10 years, as one part of a broad mobilisation of public investment into clean energy and innovation. 

The breath of fresh air for the renewables industry from Trump to Biden has seen a subtle shift to bet against the fossil-fuel industry and buy renewables. The Galaxy share price has been able to enjoy the recent uplift in sentiment, increasing 17% this month and hitting pre-Tesla battery day levels. 

Multi-year offtake agreement 

On Wednesday, Galaxy signed a three-year agreement with Sichuan Chengtun Lithium Co, a wholly owned subsidary of Chengxin Lithium Group Co Ltd. Chengxin has agreed to purchase 60,000 dmt per annum (+/- 10%) of spodumene concentrate from Galaxy in each year, 2021, 2022 and 2023. To add some perspective, Galaxy shipped 16,753 dmt of spodumene concentrate in the thrird quarter and a further 15,7000 dmt in early October. 

Due to current soft market conditions, Galaxy’s near-term sales volumes and shipping schedules will be largely dictated by the spot price that Galaxy is willing to accept and the pace customers are able to destock their inventory levels. Mt Cattlin’s current final product inventory levels plus forecast production for the fourth quarter of 2020 are sufficient to meet requirements for this quarter. 

Galaxy CEO Simon Hay said the company expected to conclude 2020 with additional shipments to customers and for Galaxy’s spodumene inventory to return to normal levels.

The drawdown of inventory combined with strong customer indications for demand in 2021 has also led Galaxy to examine the potential ramp up of Mt Cattlin back to full rate in 2021, although there will need to be sustained price increases for us to commit to the return of higher production levels. 

While there is an anticipated lithium demand surge in the medium to long term, the lithium spot price currently remains at multi-year lows. Only time will tell if the spot price will match the bullish sentiment for lithium demand and commitment to renewable energies. 

More reading

• These are the 10 most shorted shares on the ASX
• These are the 10 most shorted shares on the ASX
• 5 ASX 200 broker updates after quarterly earnings season
• These are the 10 most shorted shares on the ASX
• These are the 10 most shorted shares on the ASX

Lina Lim has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of and recommends Tesla. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the Galaxy (ASX:GXY) share price could push higher appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/35j2lil

The Eclipx Group Ltd (ASX: ECX) share price is pushing higher this morning following the release of its full year results.

In morning trade the fleet management company’s shares up 1% to $1.71.

How did Eclipx perform in FY 2020?

Eclipx had a relatively positive year and delivered modest bottom line growth in FY 2020 despite weaker revenues.

For the 12 months ended 30 September, Eclipx recorded a 5% decline in revenue from continuing operations to $672.25 million.

However, improvements in its margins led to earnings before interest, tax, depreciation and amortisation (EBITDA) growing 4.3% year on year to $85.4 million.

Also growing in FY 2020 was its core cash net profit after tax and amortisation (NPATA), which came in 2.2% higher year on year at $47.5 million.

Management notes that against a challenging macroeconomic backdrop, the core fleet and novated business delivered a solid result. It feels this reflects the defensiveness of its underlying business.

Simplification Plan update.

The company also provided an update on its Simplification Plan, which was successfully executed one year ahead of schedule.

This has seen all six non-core divestments completed between July 2019 and August 2020.

It has also led to its $15 million cost reduction target being exceeded on an annualised basis and a 56% reduction in gross corporate debt. The latter is down from $350 million to $155 million, which is ahead of $175 million target.

Management notes that post-simplification, Eclipx is a pure-play fleet management platform, with a clear focus on growth in its three target markets. These are the Corporate, Novated and SME markets.

Outlook.

While no guidance was given for the year ahead, management spoke positively on its prospects.

It commented: “The delivery of the Simplification Plan ahead of schedule places the Group in a position of strength. This position provides the Group with confidence, going into FY21, that it will successfully implement the next phase of its strategy, Strategic Pathways. As the Group progresses through FY21, it will assess the best use of excess capital for shareholders having regard to balancing macro risk and organic growth alternatives.”

More reading

• Why the Douugh (ASX:DOU) share price is storming 16% higher today
• Avita Therapeutics (ASX:AVH) share price higher following Q1 update
• We Will Remember Them
• 3 compelling ASX shares rated as buys by brokers
• Is the AMP (ASX:AMP) share price really worth $2.45?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Eclipx (ASX:ECX) share price higher on FY 2020 results release appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/3pjPy7h

The Douugh Ltd (ASX: DOU) share price is storming higher following the release of announcement today.

At the time of writing the neobank and artificial intelligence-driven financial wellness app provider’s shares are up a sizeable 16% to 32 cents.

What did Douugh announce?

This morning Douugh announced the end of its beta program ahead of a full market launch of the Douugh app in the United States in the coming days following extensive market testing and user feedback.

Douugh’s app is aiming to disrupt the business model of banking by helping people better manage their money and live financially healthier. The company’s vision is to one day become a fully autonomous financial control centre.

Management advised that the end of the beta program also marks the successful completion of a number of significant regulatory and development tasks.

In respect to its regulatory and compliance, the company has received the necessary bank approvals following the implementation and validation of advanced protocols to meet anti-money laundering and Office of Foreign Assets Control (OFAC) regulations. It has also collected significant use case data to train up its artificial intelligence-powered fraud detection engine to guard against account takeover and transactional fraud events.

What else has been done?

Management also advised that the company has been busy developing its app to ensure a superior user experience. This includes app optimisation for the latest Apple iOS software and the new iPhones.

In addition to this, the company has extended its development efforts to in-app functionality. It has made improvements such as users being able to see pending transactions. It has also rigorously tested the platform to ensure it is ready to scale and onboard a significant level of new users in anticipation of launch.

As a result of the above, management expects to submit its app to the Apple App Store on 13 November. A full market launch will be announced upon approval.

More reading

• Here are the 3 best performing IPO shares in 2020
• Douugh and Ioupay were among the most traded shares on the ASX last week
• Why the Douugh (ASX:DOU) share price is up almost 1000% since its IPO
• Douugh and Afterpay were among the most traded shares on the ASX last week

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Why the Douugh (ASX:DOU) share price is storming 16% higher today appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/32sJAr5

In morning trade the Avita Therapeutics Inc (ASX: AVH) share price is pushing higher after the release of its first quarter update.

At the time of writing the regenerative medicine company’s shares are up 2% to $6.23.

How did Avita perform in the first quarter?

For the three months ended 30 September, Avita reported total global revenue of US$5.1 million. This was up 56% on the prior corresponding period.

This revenue is made up almost entirely of its U.S based RECELL revenue, which came in 59% higher than the same period last year at US$5 million.

This was driven by a 27.2% increase in procedural volumes to 496 and the addition of 9 new accounts in the first quarter. The latter brings its total accounts to 86.

Avita reported a gross margin of 82% for the first quarter of 2021, compared with 81% in the same quarter last year.

However, its operating expenses are still vastly greater than the money it is bringing in. Operating expenses were US$14.9 million for the first quarter, up from US$8.3 million for the prior corresponding period.

Management advised that this increase was primarily driven by the additional costs incurred from its dual listed entity on the NASDAQ and the ASX, along with the commencement of pivotal clinical trials for the treatment of paediatric scald injuries, soft tissue reconstruction, vitiligo and other research and development activities aiming to further promote the RECELL System.

In light of this, Avita posted a net loss of US$10.2 million for the quarter. This led to the company finishing the period with a cash balance of US$65.8 million.

Outlook.

Due to the uncertainty surrounding the COVID-19 pandemic, management advised that it will not be providing financial guidance at this time.

However, it will continue to evaluate its guidance policies and anticipates providing an update at the time of its second quarter earnings announcement based on available information at that time.

More reading

• Why Alcidion, Avita, BHP, & REA Group shares are storming higher
• AVITA Therapeutics (ASX:AVH) share price climbs higher on reverse ageing project
• 3 ASX small cap shares you must add to your watchlist
• The ASX 200 sank almost 2% today

James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. owns shares of Avita Medical Limited. The Motley Fool Australia has recommended Avita Medical Limited. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post Avita Therapeutics (ASX:AVH) share price higher following Q1 update appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/38uGrL6

We all know the deep, heavy quiet of an ANZAC Day commemoration service.

The minute’s silence, when we stop, together, to reflect on the sacrifices paid by our service men and women in our country’s name.

I was moved to think about that silence when I again read this description on the RSL’s website:

“At 11.00 am on 11 November 1918 the guns fell silent as hostilities ceased on the Western Front, ending four years of death and destruction. Earlier that day, at 5.00 am, the Germans signed an armistice in a railway carriage at Compiègne. In the following year, the Treaty of Versailles made the cease-fire permanent.”

I can only imagine the other-worldly silence of that moment, 102 years ago.

After years of fighting, of gunshots and explosions, near and far, all of a sudden there would have been… silence.

I imagine some of our Diggers may have embraced their mates, overcome by the moment.

I imagine others might have just exhaled deeply, trying to comprehend the end of what had, minutes earlier, been a life and death struggle.

So much death. Destruction. Loss. Sacrifice.

The mates who wouldn’t be on the ship with them for the long journey home.

And the rest, who returned, but would never be the same.

I think about the silences in the homes of families whose loved ones would not return. 

I think about the deep, painful silences of those who returned, but forever bore the mental and physical scars of their service.

Tragically, while November 11, 1918 marked the end of The Great War, its other moniker, The War To End All Wars, was sadly optimistic.

The Great War was, of course, renamed World War I, a name change forced, two decades later, by The Second World War.

Thankfully, the human cost of war has been slowly falling, since; yet it has continued.

And so November 11, originally known as Armistice Day, to remember that original cease fire, became Remembrance Day: a day for Australia and her allies to remember the sacrifice of those who died in the service of their country in all wars and war-like conflicts, and the sacrifice of those who returned, but were forever changed.

They all paid a heavy price. Some, the ultimate price.

“Greater love hath no man than this, that a man lay down his life for his friends” the Christian bible tells us.

I’m not religious, but that remains one of life’s great truisms.

And so, we still stop, today, at 11am, for one minute’s silence.

I would encourage you to do the same.

To remember.

They went with songs to the battle, they were young,

Straight of limb, true of eye, steady and aglow.

They were staunch to the end against odds uncounted;

They fell with their faces to the foe.

They shall grow not old, as we that are left grow old:

Age shall not weary them, nor the years condemn.

At the going down of the sun and in the morning

We will remember them.

Lest We Forget.

More reading

• 3 compelling ASX shares rated as buys by brokers
• Is the AMP (ASX:AMP) share price really worth $2.45?
• 2 little-known ASX small cap shares rated as buys by fundie
• An insider just bought $355,000 worth of Westpac (ASX:WBC) shares
• These ASX dividend shares offer 4.5%+ dividend yields

Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

The post We Will Remember Them appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/35kDRpc

The three ASX shares I’m going to mention in this article are rated as ‘buys’ by several brokers.

Broker recommendations give an indication where market analysts think there are buying opportunities for investors. Share prices change all the time, so sometimes a broker could think an ASX share is a buy at one price and perhaps a sell if it were significantly higher.

Investment site MarketIndex regularly collates the ratings of brokers together to assess what the broker community collectively think are opportunities. Just because several brokers think something is a buy doesn’t mean it’s guaranteed to do well, but it may reveal some insights.

With that in mind, here are three ASX shares that brokers like:

BHP Group Ltd (ASX: BHP)

BHP Group is one of the largest resource businesses in the world. The ASX share produces a number of commodities including iron ore, copper and oil.

According to the ASX, it has a market capitalisation of $106 billion, making it one of the biggest businesses listed in Australia.

BHP is rated as a buy by at least 10 analysts, although there are also at least six that think it’s only a ‘hold’.

The BHP share price is down 7.5% since the start of 2020, though it fell to almost $25 in March. In FY20 BHP reported that its continuing profit from operations declined by 11%, however underlying attributable profit only declined by 4%. This result was supported by stronger iron ore prices and continuing Chinese demand, which mostly offset weaker markets in coal and petroleum.

BHP’s FY20 dividend was cut by 10% to US$1.20 per share. Using the same dollar in Australian dollars, it offers a trailing grossed-up dividend yield of 6.9%.

Coles Group Ltd (ASX: COL)

Coles is one of Australia’s biggest supermarket businesses. It operates a nationwide network of Coles supermarkets, as well as a liquor business with brands such as Liquorland.

According to the ASX, Coles has a market capitalisation of $23.6 billion, it’s one of the largest 20 ASX shares.

Coles is rated as a buy by at least eight analysts, though it’s rated as a ‘hold’ by at least five as well.

The supermarket ASX share recently reported in its FY21 first quarter that its food sales continue to be elevated with Victoria’s COVID-19 restrictions. In the first quarter, supermarket sales rose 9.8% and total first quarter sales grew 10.5% after it was helped by liquor sales going up 17.4%.

That quarter came after FY20 sales increased by 6.9% and underlying net profit grew by 7.1%.

At the current Coles share price, it has a trailing grossed-up dividend yield of 4.6%. It’s also trading at 23x FY21’s estimated earnings according to Commsec.

GPT Group (ASX: GPT)

GPT is one of the largest property groups on the ASX, with a market capitalisation of approximately $9.2 billion.

It’s rated as a buy by at least nine analysts, though there are also two that believe it’s a ‘sell’.

GPT has a mix of retail, office and logistics buildings in its property portfolio.  

In its recent FY20 first half result it reported negative property valuation movements of $711.3 million as a result of effects of the pandemic on its retail assets. However, it still generated funds from operations (FFO) – net rental profit – of $244.5 million which allowed it to pay a distribution of 9.3 cents per unit.

In its latest quarterly operational update for the three months to 30 September 2020, it said that its rent collection rates averaged 90% of third quarter billings, up from 67% in the second quarter.

Whilst it still wasn’t able to provide distribution guidance, Commsec has a distribution forecast of 18.8 cents for 2020, which translates to a distribution yield of 4% at the current GPT share price.

More reading

• These ASX dividend shares offer 4.5%+ dividend yields
• The Readytech (ASX:RDY) share price has doubled since March
• The Incitec Pivot (ASX:IPL) share price is lower today on full year results
• Why Coles, Incitec Pivot, Kogan, & Northern Star shares are crashing lower
• ASX 200 hits 8-month high. Here’s why we could go higher from here

The post 3 compelling ASX shares rated as buys by brokers appeared first on Motley Fool Australia.

from Motley Fool Australia https://ift.tt/2UlcEMt