Tag: Motley Fool

The Bubs Australia Ltd (ASX: BUB) share price will be in the spotlight today after the company published its FY22 annual results this morning.

Prior to the market opening, shares in the infant formula company are set at 60.5 cents apiece. Yesterday, investors bid the Bubs share price 4.3% higher in anticipation of today’s release. But will the excitement be validated in today’s trading session?

Bubs share price in focus amid record result

• Record gross revenue up 123% from FY21 to $104.2 million
• Revenue of $89.3 million, up 127% from the prior corresponding period
• China revenue up 166%, representing 55% of group revenue
• Record Australian infant formula market share of 4.7%
• Underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) of $4.8 million
• Loss after tax narrowed to $11.4 million from $74.7 million

Much like what A2 Milk Company Ltd (ASX: A2M) reported yesterday in its own set of results, FY22 was a year of recovery for Bubs. The two main tailwinds boosting the business during the year were growth in China sales and the supply deal in the United States.

Remarkably, gross revenue in the second half of FY22 was 40% more than all of FY21. It was during the second half that the United States experienced its infant formula shortage. Clearly, this event supported stronger performance for Bubs in the process.

What else happened in FY22?

For Bubs, a pivotal moment during the financial year was the United States ‘Operation Fly Formula’ mission. This government initiative has enabled the Aussie infant formula company to make a splash in the much larger US market — helping the Bubs share price at the same time.

Ultimately, the operation led to Bubs partnering with major retailers including Albertsons Safeway, Walmart, Kroger, and Target. The outcome — other international sales increased 202% from the prior year, now making up 28% of revenue, formerly 21%.

What did management say?

Commenting on the record year, Bubs founder and CEO Kristy Carr stated:

Gross margins increased significantly over the year to 32% for the group. Bubs Goat Infant Formula product margin increased to 40%. This was driven primarily by increased scale, a growing proportion of sales derived from higher margin infant formula, optimisation of product and channel mix, and improved supply-side economics inherent in our vertically integrated manufacturing model.

Furthermore, Carr noted the agility demonstrated by the business amid a confluence of macroeconomic headwinds. Despite inflation, supply chain issues, and a precarious economy, Bubs delivered an impressive result.

What’s next?

Turning to what lies ahead, Bubs’ management refrained from providing precise guidance. However, Carr described a further focus on margin expansion and earnings growth. This will likely be music to the ears of shareholders.

For context, Bubs is yet to turn profitable on the bottom line. Hence, keeping the focus on earnings growth would be essential for long-term shareholders.

Finally, the company’s main efforts will stay on growing in the US and China markets.

Bubs share price snapshot

The Bubs share price has been a winner for those who have stuck around. In the past year, the company’s shares have appreciated 47.5% in value. Meanwhile, the S&P/ASX 200 Index (ASX: XJO) is yet to break even.

Currently, Bubs trades on a price-to-sales (P/S) multiple of approximately five times.

The post Bubs share price on watch as full-year revenue blasts 127% higher appeared first on The Motley Fool Australia.

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More reading

• Why the shine was off Apple stock on Monday
• ‘Sorry, you can’t afford advice that’s in your best interest’
• Sandfire Resources share price in focus as dividend ditched
• Broker names 2 ASX share to buy now
• Can Twiggy really build Fortescue into a ‘green global energy and metals machine’?

Motley Fool contributor Mitchell Lawler has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended A2 Milk and BUBS AUST FPO. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Really? 

“Lowering standards to lower fees” is the proposed approach to reforming financial advice?

That’s a strong “Hell to the no” from me.

See, there’s a review underway, covering financial advice.

And boy… as you can tell, I have some thoughts.

Strap yourselves in.

Apparently, if reports in the Australian Financial Review are to be believed (and there’s no reason not to), the review is going to recommend that financial advisors no longer have to apply the ‘best interest’ test when giving financial advice.

Whoa! What the actual?

If these changes go through, financial advisors would no longer have to ensure their advice was in the client’s best interest?

Think about that for a minute.

Imagine being a doctor, and not having your patients’ best interest as your number one obligation.

Or a lawyer, and not having to act in the best interest of your client.

And yet this review is (apparently) about to let financial advisors act in some other way?

Apparently, ‘good’ advice will now be enough.

Bloody hell.

Maybe, after a decade or so, the industry is about to win, putting itself ahead of its clients again?

Oh, they don’t actually say that.

They say they’re worried that advice isn’t affordable enough.

See, having to act in clients’ best interest is apparently too expensive.

And if they don’t have to do that anymore, they can make advice cheaper.

Sure, it may not be in our best interest anymore, but at least it’s affordable.

If that sentence doesn’t strike you as completely absurd, you need to read it again.

Apparently, the options are:

— We’ll do what’s in your best interest, but it’ll be expensive; or

— You can pay less, but we can’t promise the advice is in your best interest

Frankly, I’m not sure I have the words.

Some people will say the administrative burden of the ‘best interests test’ excludes those who can’t afford the fee.

I’m sure that’s right. After all, most financial advisors are driving 15-year-old Toyota Camrys, right?

A cheap shot? Maybe.

And they’re not bad guys and girls. Frankly, they’re right — the admin burden is a debacle.

They’re not wrong about the problem.

But it’s the proposed solution that stinks.

See, there IS a problem.

But it’s not the one you think.

It’s not the ‘best interests’ duty that’s the problem.

It’s the fact our system is so bloody complex that so many of us need, or could possibly benefit from, financial advice in the first place.

Which, if you’re a financial planner, you’re not really going to complain about, are you?

Because it’s that very patchwork of tax complexity that is your meal ticket.

I don’t blame those advisors for helping us navigate it, by the way.

But if they were honest with themselves, I’m pretty sure they’d admit that the complexity isn’t actually necessary for our society to function.

And many of their clients, if they were being honest, would suggest the same.

(Don’t believe me? Compare the number of people who want less red tape for business with the number of people who love it, when it helps them get one over the taxman. Ideology is kinda Swiss-cheesy like that – it gets very holey when you might benefit.)

So they’re right – much of the financial advice regulation requires lots of overheads to make sure it’s in the client’s best interest… which is as it should be.

Who honestly thinks ‘Ah, close enough’ is okay?

Financial advice should always be in the client’s best interest.

So the answer isn’t to give advice which is okay-ish, to save a few bob.

It’s to change the law so that the financial advice isn’t needed.

Seriously, when I can pay a financial advisor a few thousand dollars, and still make more than that based on the advice she gives me, the system is broken.

Super, family trusts, company structures, negative gearing, estate planning, work deductions… the list goes on.

Why?

Because the politicians and regulators have been captured by the industry and its wealthiest clients.

How many people got formal financial advice (other than an accountant helping them lodge their tax) a few decades ago?

Probably a small fraction of the adult population.

These days?

The dog’s breakfast of loopholes and (legal) tax dodges gets bigger by the year.

And it’s no wonder the industry keeps growing.

If the government is serious, and Treasury is fair dinkum, they won’t repeal the best interests test.

They’ll change the law so that my financial advisor says, “Sorry, mate. I can’t justify taking you on as a client. There’s nothing I can do for you”.

Or, “taking you on as a client is expensive, because my advice needs to be in your best interests, and I can save you enough to offset my fee”.

The middle ground – slightly less expensive advice that isn’t in my best interest – is something only a government (or a financial advice industry looking for a payday) could love.

I guess we’ll see who has the ear of those in power, and whether they’re truly trying to improve things.

Over to you, Prime Minister.

Fool on!

The post ‘Sorry, you can’t afford advice that’s in your best interest’ appeared first on The Motley Fool Australia.

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More reading

• Why the shine was off Apple stock on Monday
• Bubs share price on watch as full-year revenue blasts 127% higher
• Sandfire Resources share price in focus as dividend ditched
• Broker names 2 ASX share to buy now
• Can Twiggy really build Fortescue into a ‘green global energy and metals machine’?

Motley Fool contributor Scott Phillips has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Sandfire Resources Ltd (ASX: SFR) share price could be one to watch today after the copper giant dropped its full-year earnings.

The company also confirmed the planned expansion of its Motheo Copper Mine, located in Botswana, from 3.2 million tonnes per annum to 5.2 million tonnes per annum following a positive definitive feasibility study (DFS).

The S&P/ASX 200 Index (ASX: XJO) materials share last traded at $4.72.

Sandfire Resources share price on watch on FY22 results

Here are the key takeaways from the copper producer’s financial year 2022 (FY22) results:

• Sales revenue of $922.7 million – a 52% increase on that of the prior corresponding period (pcp)
• Earnings before interest, tax, depreciation, and amortisation (EBITDA) lifted 33% to $447.3 million
• Net profit after tax (NPAT) fell 13% to $111.4 million
• Earnings per share (EPS) slumped to 32.05 cents – down from 72.14 cents
• Cash flow from operating activities lifted 12.5% to $391.2 million
• Scrapped its final dividend

Sandfire Resources posted record sales for FY22, underpinned by its shiny new MASTA Copper Operations. The Spanish business brought in $150.6 million of EBITDA over the five months of FY22 in which the company owned it. Meanwhile, its DeGrussa Copper Operations segment provided $392.5 million of EBITDA in FY22 – 5% less than it did in the pcp. Its production for the year came in within guidance.

Sandfire Resources will pause its dividends on account of its rapid international growth program, the development of the Motheo Copper Mine, and the repayment of debt from its MATSA acquisition.

The company sold 93,827 tonnes of copper, 32,328 tonnes of zinc, 28,618 ounces of gold, 3,312 tonnes of lead, and 952,000 ounces of silver in the period. Its average realised copper price ended up at US$8,985 per tonne while that of zinc came in at US$3,249.

What else happened in FY22?

The major news from Sandfire Resources last financial year was, of course, its acquisition of Spain’s Minas De Aguas Tenidas (MATSA). The purchase set the ASX 200 company back US$1.86 billion and transformed it into one of Australia’s largest copper producers.

It also underwent an approximately $1.25 billion capital raise to help fund the acquisition.

The Sandfire Resources share price fell 13% on its return to trade following the news.

What did management say?

Sandfire CEO and managing director Karl Simich commented on the company’s earnings, saying:

The momentous achievements of the past 12 months have fundamentally changed the face of Sandfire and set the scene for our next decade of growth.

The MATSA acquisition has transformed our portfolio and – together with the exceptional progress we made during the year in constructing the new Motheo Copper Mine in Botswana – have provided the elements for what was arguably been our best-ever year as a business.

What’s next?

The company will pay US$118 million of its US$650 debt facility born from its MATSA acquisition in September. Another US$80 million will go to the facility in January.

On top of that, the Motheo expansion is estimated to come at a cost of US$397.4 million. Expansion activities are expected to begin in the March quarter with increased plant throughput expected 12 months later. Initial production at the project is expected in the June quarter.

The company is also working to optimise MATSA.

Finally, processing at DeGrussa is expected to be complete in October, with a plan for ramp-down and mine closure in place.

Sandfire Resources share price snapshot

This year has been rough on the Sandfire Resources share price.

It has slumped 30% since the start of 2022. It’s also currently 22% lower than it was this time last year.

For context, the ASX 200 has fallen 8% year to date and 7% over the last 12 months.

The post Sandfire Resources share price in focus as dividend ditched appeared first on The Motley Fool Australia.

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More reading

• How are ASX copper shares performing after Monday’s surge?
• Here are the top 10 ASX 200 shares today
• ASX copper shares explode by up to 34% following BHP takeover bid
• Why is the Sandfire share price leaping 7% on Monday?

Motley Fool contributor Brooke Cooper has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The share price of Fortescue Metals Group Limited (ASX: FMG) could become increasingly impacted in the coming years by the company’s efforts to become an integrated green energy and resources company.

It wants to be a leader in producing green hydrogen and green ammonia, and also provide technology that can help the world decarbonise.

By 2030, Fortescue wants to be producing 15 million tonnes of green hydrogen annually for customers. One of the main customers could be E.ON which has signed a memorandum of understanding with Fortescue Future Industries (FFI) to supply up to five million tonnes per annum of green hydrogen to Europe by 2030.

Fortescue talisman is determined

Writing in the FY22 annual report, Fortescue founder Andrew Forrest said:

Today, we have two choices.

Firstly, we could turn a blind eye to the rapidly changing global business and regulatory climate.

Or we can transition into a global green metals, minerals, energy, technology and development company, capable of delivering not just green iron ore, but also all of the minerals critical to the green energy transition. To lead the green energy revolution – and, once again, set a record-breaking industry benchmark in everything we do. We have already begun.

We must become the Saudi Arabia, not of oil, but of green hydrogen. We can become the Asia of green iron too, if we are prepared to commit to it. Think the North West Shelf, not on climate-threatening methane, but of carbon-free green ammonia, for every ship in the world. Please don’t think it can’t be done, it can.

How much progress has been made?

There are two projects that Fortescue pointed out that FFI is working on.

It has successfully completed the first phase of studies with Incitec Pivot Ltd (ASX: IPL) to convert the Gibson Island ammonia production facility in Queensland to be powered by green hydrogen, and negotiations are continuing to finalise the front-end engineering design.

Fortescue also noted that construction has commenced for FFI’s green energy manufacturing centre in Gladstone, Queensland, in February 2022, with the first stage development of an electrolyser manufacturing facility with an initial capacity of 2GW per annum and the first production in 2023.

FFI is currently being funded through a capital allocation framework where 10% of Fortescue’s net profit after tax (NPAT) is committed to FFI each year. FFI currently has US$1.1 billion set aside, including US$342 million from Fortescue’s FY22 second-half NPAT.

When will FFI start making green energy revenue?

In terms of production, there were a few different things that FFI’s new CEO, Mark Hutchison, noted. The Australian Financial Review quoted Hutchison on a few different topics.

Talking about where the first export from FFI could come from, he said Queensland’s Gibson Island could be the first location from the possible portfolio of opportunities:

I think the first green hydrogen we produce is probably going to come out of Australia, exported to Germany. Starting off in Gibson Island in Queensland, I would say Queensland will probably be the first cab off the rank to be honest.

Another question was when FFI will start making earnings from green hydrogen and green ammonia. Here’s his answer:

I’m really hoping we will have some available [in the] ’24, ’25 timeframe.

The geopolitical environment will only serve to speed this up. Energy security is leading more and more countries to green energy solutions.

Fortescue share price snapshot

Over the past six months, despite all the volatility, the Fortescue share price has still registered a rise of 4%.

It closed on Monday at $18.89, down almost 5% on the day.

The post Can Twiggy really build Fortescue into a ‘green global energy and metals machine’? appeared first on The Motley Fool Australia.

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More reading

• 5 things to watch on the ASX 200 on Tuesday
• Why is the Rio Tinto share price having such a lousy start to the week?
• How does the BHP dividend stack up against the latest Fortescue payment?
• Everything you need to know about the trimmed-down Fortescue dividend
• Fortescue share price backtracks as final dividend is slashed by 43%

Motley Fool contributor Tristan Harrison has positions in Fortescue Metals Group Limited. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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Are you interested in adding some more ASX shares to your portfolio next month?

Three ASX growth shares that could be worth considering in September are listed below. Here’s what you need to know about them:

Altium Limited (ASX: ALU)

The first ASX growth share to look at is printed circuit board (PCB) design software provider Altium. Thanks to its leadership position in an enormous and growing market, Altium has been growing its earnings at a solid rate for many years. This continued in FY 2022, with the company recently blowing the market away with one of the strongest results of the month. Pleasingly, management doesn’t expect this strong growth to end any time soon and is aiming to more than double its revenue to US$500 million by 2026.

Bell Potter is bullish on Altium. It currently has a buy rating and $37.50 price target on its shares.

Readytech Holdings Ltd (ASX: RDY)

Another ASX growth share that could be in the buy zone in September is enterprise software provider Readytech. Earlier this month, Readytech released its full year results and revealed a 16.8% year over year increase in revenue to $78.3 million and a 45.5% jump in underlying EBITDA to $27.5 million. Looking ahead, management advised that it expects organic revenue growth in the mid-teens in FY 2023. This will be boosted by $2 million of incremental revenue from FY 2022 acquisitions.

Goldman Sachs was pleased with this result and reiterated its buy rating with a trimmed price target of $4.30.

TechnologyOne Ltd (ASX: TNE)

A final ASX growth share to look at is fellow enterprise software provider TechnologyOne. It could be a growth share to buy thanks to its ongoing transition to become a software-as-a-service (SaaS) focused business. This transition has been going very well and management expects this to continue. So much so, it is aiming to almost double its annual recurring revenue (ARR) to $500 million by FY 2026.

The team at Bell Potter is very positive on Technology One. The broker currently has an add rating and $14.25 price target on its shares.

The post Experts name 3 ASX growth shares to buy in September appeared first on The Motley Fool Australia.

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More reading

• ASX 200 reporting season weekly wrap: Top risers and fallers
• Analysts name 2 growing ASX shares as buys
• Could ASX 200 tech share Altium be in for another takeover approach?
• Here’s what you need to know about the Altium Group FY22 dividend
• Why are ASX 200 tech shares having such a cracker of a day?

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Altium and Readytech Holdings Ltd. The Motley Fool Australia has recommended Readytech Holdings Ltd and TechnologyOne Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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ASX reporting season may be drawing to a close, but the number of S&P/ASX 200 Index (ASX: XJO) shares going ex-dividend is ramping up.

Here are five ASX 200 shares turning ex-dividend tomorrow. This means that today will be the last day to lock in the latest dividend payments from these ASX 200 shares.

Woolworths Group Ltd (ASX: WOW)

Woolworths is the largest ASX 200 share going ex-dividend tomorrow. 

Last week, the supermarket giant declared a fully franked final dividend of 53 cents, marginally lower than the prior period.

The payment date has been set for 29 September, with a dividend reinvestment plan (DRP) also available to shareholders.

Woolies shares are currently flashing a trailing dividend yield of 2.5%, which grosses up to 3.6% including franking credits.

Endeavour Group Ltd (ASX: EDV)

Woolies spin-off Endeavour will also see its shares turn ex-dividend tomorrow.

The ASX 200 drinks and hotels business announced its FY22 results last week, bumping up its fully franked final dividend to 7.7 cents.

Investors on Endeavour’s share registry by the closing bell today should see this dividend come through on 16 September. 

Endeavour shares currently come with a trailing dividend yield of 2.8%. Throw in franking credits and this yield lifts to 4.0%.

Tabcorp Holdings Limited (ASX: TAH)

Today will be the last day to snap up Tabcorp’s final dividend before shares turn ex-dividend tomorrow.

The ASX 200 gambling business recently declared a fully franked final dividend of 6.5 cents, which will be paid on 23 September.

Alternatively, shareholders can choose to participate in the company’s DRP, with a 2.5% discount on offer for those who take part.

Tabcorp shares are currently sporting a trailing dividend yield of 13.1%. However, after spinning off Lottery Corporation Ltd (ASX: TLC) in late May this year, Tabcorp’s future dividends will likely be slashed.

Treasury Wine Estates Ltd (ASX: TWE)

Treasury Wine is another ASX 200 share going ex-dividend on Wednesday.

Today is the last day to lock in the company’s fully franked final dividend of 16 cents.

This final dividend will be paid out on 30 September for shareholders not participating in the company’s DRP.

Treasury Wine shares currently come with a trailing dividend yield of 2.4%. This grosses up to 3.4% with the benefit of franking credits.

Blackmores Ltd (ASX: BKL)

Last but not least, Blackmores shares will also be turning ex-dividend tomorrow.

The ASX 200 health supplements business recently released its FY22 results, cutting its fully franked final dividend by 24% to 32 cents.

Investors who own Blackmores shares by the time the market closes today should see this payment land in their accounts on 19 September.

A DRP is also available, with those participating receiving a 2.5% discount for their troubles.

With full-year dividends of 95 cents, this puts Blackmores shares on a trailing dividend yield of 1.4% or 2.0% grossed up.

The post 5 ASX 200 shares turning ex-dividend on Wednesday appeared first on The Motley Fool Australia.

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More reading

• Here are the 3 most heavily traded ASX 200 shares on Friday
• Goldman Sachs says Woolworths share price has huge upside potential
• Why City Chic, Flight Centre, Perpetual, and Woolworths shares are sinking
• Everything you need to know about the latest Woolworths dividend
• Woolworths share price wilts today amid ‘volatile and challenging’ outlook

Motley Fool contributor Cathryn Goh has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Blackmores Limited and Treasury Wine Estates Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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The Perpetual Limited (ASX: PPT) share price tumbled with the ASX 200 index on Monday.

The fund manager’s shares dropped over 3% to $27.25.

This means the Perpetual share price is now down 26% since the start of the year.

Broker tips Perpetual share price to bounce back strongly

The team at Bell Potter are positive on the fund manager and believe its shares could bounce back very strongly.

According to a note, the broker has retained its buy rating and lifted its price target on the company’s shares to $39.80.

Based on the current Perpetual share price of $27.25, this implies potential upside of 46% for investors over the next 12 months.

The broker is also forecasting a dividend yield of approximately 7.5% in FY 2023, stretching the total potential return beyond 50%.

What did the broker say?

Bell Potter is a fan of the company’s plan to acquire Pendal Group Ltd (ASX: PDL). It commented:

We believe the agreed acquisition of PDL is good news and should create a strong company with a wide product set and global distribution opportunities, which should drive growth over the next few years.

In addition, excluding the Pendal acquisition, the broker sees significant value in the Perpetual share price. Particularly after recent weakness. It concluded:

We value Perpetual (excluding Pendal) using DCF valuation, with a WACC of 10.0% applied to EBITDA after tax. This gives a value for the business of $2.3bn or $39.78 per share (which we round to $39.80 as a target price). This is 3.6% higher than our previous valuation of $38.40 per share. The 9.4% fall in the share price on August 25 following the [Pendal] announcement seems at odds with the strong trading and benefits of the merger, and we would see this recent weakness as a buying opportunity.

The post Why Bell Potter is tipping 46% upside for this beaten-up ASX 200 share appeared first on The Motley Fool Australia.

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Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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We’re almost at the end of reporting season, so it’s time to think about which ASX shares might have the best prospects after the flurry of numbers.

Morgans analyst Andrew Tang cast his eyes over the company results and has nominated six ASX stocks as his “best calls to action”:

• Wesfarmers Ltd (ASX: WES)
• Ramsay Health Care Limited (ASX: RHC)
• Universal Store Holdings Ltd (ASX: UNI)
• Peter Warren Automotive Holdings Ltd (ASX: PWR)
• Jumbo Interactive Ltd (ASX: JIN)
• Monash IVF Group Ltd (ASX: MVF)

A core holding for long-term investors

Tang liked ASX share Wesfarmers’ second-half “bounce back”.

“We continue to view Wesfarmers as a core portfolio holding for long-term investors,” he said on the Morgans blog.

“Kmart Group earnings recovered strongly in 2H22 after being heavily impacted by lockdowns in 1H22.”

In fact, the latest dividend exceeded all expectations.

“FY22 dividend per share of 180 cents was above our 164.8 cents per share forecast and Bloomberg consensus (169.5cps),” said Tang.

“Group return-on-equity rose 330 basis points to 29.4%.”

The takeover story isn’t done yet

Notwithstanding the KKR consortium’s takeover proposal falling over last week, the team at Morgans now rates Ramsay Health as a buy.

“Despite lingering volatility and FY24 a ‘normal’ trading year, it takes a back seat to KKR’s now revised offer, which we believe is likely to get up in some form,” said Tang.

“We have adjusted our FY23-24 earnings, rolled forward our valuation multiples, and maintained a takeout premium.”

Meanwhile Peter Warren’s enjoying an industry-wide sweet spot.

“Demand/supply imbalance continues to drive strong margin outcomes for the sector,” said Tang.

“Industry consolidation will continue — we expect Peter Warren to be a participant (primary growth driver), or even a potential target in time.”

The stock price remains cheap, the Morgans team reckons.

“Peter Warren is trading on ~7x FY23 PE and ~10x our assumed ‘more normalised’ conditions (FY24/25).”

Growth-a-thon for these two ASX shares

Lotteries resellers Jumbo Interactive reported a year of “solid growth”, according to Tang.

“The business continued to diversify its earnings base, with SaaS now making up nearly half of group EBITDA,” he said.

“We expect Jumbo Interactive to continue to achieve steady growth in the years ahead through a combination of organic contract wins, M&A and diversification.”

Tang has a positive outlook on clothing retailer Universal Store.

“We believe Universal will deliver double-digit growth in sales and earnings in FY23 as an expanded store network plays into the resilience of demand for fashion apparel from a young customer cohort experiencing high levels of employment, higher wages and more and more opportunities to go out and socialise.”

As such, the Universal share price is just too cheap to resist at the moment.

“The FY24F P/E is 10x, which we believe is far too low for a business with the quality and growth potential of Universal.”

The post 6 ASX shares Morgans would buy right now appeared first on The Motley Fool Australia.

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More reading

• Leading brokers name 3 ASX shares to buy today
• Universal Store share price slides lower as earnings tighten in FY22
• 3 ASX All Ords shares that saw major price action on FY22 results
• Everything you need to know about the latest Wesfarmers dividend
• Ramsay share price plunges 4% after suitor withdraws takeover offer

Motley Fool contributor Tony Yoo has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended Jumbo Interactive Limited. The Motley Fool Australia has positions in and has recommended Wesfarmers Limited. The Motley Fool Australia has recommended Jumbo Interactive Limited and Ramsay Health Care Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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If you’re searching for dividend shares to buy, then the two listed below could be worth looking at.

Both have been named as buys by analysts recently and tipped to provide good yields. Here’s what you need to know:

Accent Group Ltd (ASX: AX1)

The first ASX dividend share that has been tipped as a buy is footwear focused retailer Accent.

While FY 2022 was a year that the company and shareholders will want to forget about quickly, the company’s medium to long term outlook remains as bright as ever. This is thanks to its strong brand portfolio and expansion strategy.

Analysts at Morgans are positive on the company. In response to its full year results, the broker upgraded its shares to an add rating with a $2.00 price target. It commented:

AX1’s renewed focus on selling at full price will, in our view, support a recovery in the gross profit margin in FY23 back towards historical averages. We welcome AX1’s moderation of the pace of its store rollout in favour of a more selective expansion strategy focused on return on investment. We see AX1 as undervalued at the current share price.

As for dividends, the broker is forecasting fully franked dividends of 9 cents per share in FY 2023 and 11 cents per share in FY 2024. Based on the current Accent share price of $1.53, this will mean yields of 5.9% and 7.2%, respectively.

Charter Hall Social Infrastructure REIT (ASX: CQE)

Another ASX dividend share for that has been tipped as a buy is Charter Hall Social Infrastructure REIT. It is a real estate investment trust that invests in social infrastructure properties.

It had another solid year in FY 2022, reporting an 8% increase in earnings per share earlier this month. And while this was a touch short of Goldman Sachs’ expectations, it hasn’t altered the broker’s bullish view on the company’s outlook.

As a result, Goldman has retained its buy rating with a $4.35 price target on its shares. The broker commented:

Although CQE’s result came in slightly below our expectations, we continue to believe the REIT is relatively well positioned given the sector’s positive fundamentals and CQE’s strong balance sheet, with headroom and liquidity to pursue investment opportunities

In addition, the broker is forecasting dividends per share of 17.3 cents in FY 2023 and 18 cents in FY 2024. Based on its current share price of $3.61, this will mean yields of 4.8% and 5%, respectively.

The post Analysts say these ASX dividend shares are buys right now appeared first on The Motley Fool Australia.

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More reading

• Morgans names 2 ASX shares to buy post-results
• Leading brokers name 3 ASX shares to buy today
• Anaysts name 2 ASX dividend shares to buy next week
• Why Accent, Cochlear, Newcrest, and Santos shares are charging higher today
• Accent share price jumps despite 59% profit drop

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has recommended Accent Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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On Monday, the S&P/ASX 200 Index (ASX: XJO) started the week with a day to forget. The benchmark index fell 1.95% to 6,965.5 points.

Will the market be able to bounce back from this on Tuesday? Here are five things to watch:

ASX 200 expected to rise

The Australian share market is expected to open the day higher on Tuesday despite a poor start to the week on Wall Street. According to the latest SPI futures, the ASX 200 is poised to open the day 16 points or 0.2% higher. On Wall Street the Dow Jones fell 0.6%, the S&P 500 dropped 0.7%, and the NASDAQ was down 1%.

Healius results

The Healius Ltd (ASX: HLS) share price will be on watch on Tuesday when the healthcare company releases its full year results. According to a note out of Citi, its analysts are expecting Healius to report a net profit after tax of $316 million. This is slightly ahead of consensus estimates of $308.9 million. However, it warned: “Near term weakness in the share price is possible through the FY22 result period as it becomes more obvious that PCR testing is permanently lower.”

Oil prices charge higher

It could be a great day for energy producers such as Beach Energy Ltd (ASX: BPT) and Santos Ltd (ASX: STO) on Tuesday after oil prices charged higher overnight. According to Bloomberg, the WTI crude oil price is up 4.15% to US$96.91 a barrel and the Brent crude oil price has risen 3.85% to US$104.88 a barrel. Traders were buying oil amid a conflict in Libya and speculation that OPEC will cut production if Iranian supply returns to the market.

Fortescue shares rated as a sell

The Fortescue Metals Group Limited (ASX: FMG) share price tumbled lower on Monday following the release of the mining giant’s full year results. Unfortunately, the team at Goldman Sachs expects more of the same in the future. This morning the broker has reiterated its sell rating and $12.10 price target. This implies potential downside of 36% for investors over the next 12 months. Goldman highlights that Fortescue is “trading at a premium to BHP & RIO; c. 1.7x NAV vs. RIO & BHP at c. 0.8x & 1.1x NAV.”

Gold price edges higher

Gold miners such as Evolution Mining Ltd (ASX: EVN) and Regis Resources Limited (ASX: RRL) will be on watch after the gold price edged higher overnight. According to CNBC, the spot gold price is up slightly to US$1,750.30 an ounce. Gold recovered from a one-month low after US dollar softened.

The post 5 things to watch on the ASX 200 on Tuesday appeared first on The Motley Fool Australia.

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More reading

• What’s going on with the Santos share price today?
• Why is the Rio Tinto share price having such a lousy start to the week?
• How does the BHP dividend stack up against the latest Fortescue payment?
• Everything you need to know about the trimmed-down Fortescue dividend
• Hoping to bag the next Evolution Mining dividend? Here’s what to do

Motley Fool contributor James Mickleboro has no position in any of the stocks mentioned. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

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