Tag: Motley Fool

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

While U.S. stocks have generated incredible returns for many decades and investors the world over want to invest in the stocks of leading U.S. companies, U.S.-based investors can also benefit from investing in top foreign companies as well.

Investing in international companies can help investors diversify their portfolios geographically, help them tap into the explosive growth of emerging markets and other developing economies, and sometimes own shares of companies at less expensive valuations than are typically seen in the United States.

Here are three great foreign companies that U.S. investors can buy now.

1. MercadoLibre 

MercadoLibre (NASDAQ: MELI) is Latin America’s leading e-commerce platform, as well as an emerging force to be reckoned with in fintech and payments. While U.S. investors don’t hear as much about Latin America as they do about China in terms of massive growth opportunities, the Latin American market collectively has enormous potential in its own right.

For example, Brazil, where MercadoLibre derives much of its revenue, has a burgeoning population of over 200 million people and the world’s ninth-highest gross domestic product (GDP). Mexico, another key market for the company, has a population of over 125 million and ranks 11th in GDP. This gives you an idea of the vast potential that lies ahead of MercadoLibre.

And this isn’t just a story about potential — the company is firing on all cylinders right now. In its most recent quarter, MercadoLibre posted scintillating year-over-year revenue growth of 57% (to $2.6 billion).

This was impressive at surface level but even more astounding when considering that it was contending with inflation and a stagnating macro economy, while lapping a quarter that included significant tailwinds from the pandemic. The company also increased total payment volume by 84% and gross merchandise volume on the platform by 26% while growing net income.

MercadoLibre is one of the top holdings in my portfolio and a compelling way to invest in growing e-commerce and online payment adoption in Latin America with a well-run company that is executing on all fronts.

2. CD Projekt 

Let’s head from South America to Europe, and Poland specifically, for this next top international stock: video game publisher CD Projekt (OTC: OTGL.Y). With titles like Cyberpunk 2077 and the Witcher series, the company is establishing a nice foothold for itself in what is estimated to be a $218 billion market globally by 2024.

With a market cap of $2 billion, CD Projekt has plenty of runway ahead in this burgeoning industry. The stock is down 58% over the past year, and its flagship Cyberpunk 2077 game sold well but received criticism for its bugs and glitches. But these situations can also make for an opportunistic entry point for investors.

The company announced a partnership with Epic Games that will enable it to use Epic’s coveted Unreal Engine, which should help it to avoid these types of issues and to “continue creating powerful, open-world RPGs [role-playing games].” An anime series called Cyberpunk: Edgerunners will be launching on Netflix (NASDAQ: NFLX), which could help to rekindle interest and broaden the game’s appeal.

What I really like about CD Projekt is that the joint CEOs, Adam Kiciński and Marcin Iwiński, have built the company themselves and have been there for a very long time — 28 years each. Not only that, but they have a lot of skin in the game as Iwiński owns 13% of the company, Kiciński owns 4%, and in total they and other founders and board members own 34% of shares.

I like the longevity and the fact that the people who helped to build the company from scratch are still there and invested for the long term. CD Projekt also pays out a small dividend.

With strong leadership and some success in a massive global market, the company looks like another top international company for investors to consider. U.S. investors can buy its American depositary receipt, or ADR.

3. Canadian Natural Resources 

Not all top foreign companies need to work on cutting-edge video games or create the future of commerce, and U.S. investors don’t always need to look far from home to find them. Take Canadian Natural Resources (NYSE: CNQ), one of Canada’s top producers of oil and natural gas, for example. The $63 billion company has a strong presence in Alberta’s oil sands, as well as operations in Great Britain’s North Sea and offshore assets in Africa.

Management has a strong commitment to creating value for shareholders on a per-share basis, and it has smartly used 2022’s increase in oil prices to pay out dividends and repurchase shares. The stock currently yields just over 4%, and the company also recently stated that, thanks to its strong performance and execution this year, it is rewarding shareholders with a special dividend of $1.50 Canadian dollars ($1.17) per share, which will be payable to shareholders of record as of Aug. 23.

This March, the company also enacted a large share buyback authorization in place that allows it to buy back about 10% of its public float by March 2023. Even after a 33% gain year to date, shares of Canadian Natural Resources still look attractive at just seven times earnings. All in all, it has world-class assets, a strong commitment to shareholder value and returning capital to shareholders, and an inexpensive valuation.

U.S. stocks are great, and there is also a world of opportunity outside of the United States for investors who want to diversify their portfolios and gain exposure to new markets and different valuations. Investing in top foreign companies like the three above is a great way to get started.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

The post 3 great foreign companies to invest in right now appeared first on The Motley Fool Australia.

(function() { function setButtonColorDefaults(param, property, defaultValue) { if( !param || !param.includes(‘#’)) { var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0]; button.style[property] = defaultValue; } } setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’); setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’); setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’); })()

More reading

• 3 top US tech stocks that could help make you rich by retirement
• Did Bill Ackman give up on Netflix too soon?
• 5 tech stocks sending the Nasdaq higher on Wednesday
• Why Apple stock popped today
• Netflix shares rose 29% last month, but the stock is still cheap

Michael Byrne has positions in MercadoLibre. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has positions in and has recommended MercadoLibre and Netflix. The Motley Fool Australia has recommended Netflix. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

This article was originally published on Fool.com. All figures quoted in US dollars unless otherwise stated.

from The Motley Fool Australia https://ift.tt/RNwxlhD

The Kogan.com Ltd (ASX: KGN) share price has risen rapidly over the past month. At yesterday’s close, Kogan shares were up a whopping 40%.

Shares in the online retailer are dragging 3% today, and of course, they’re still down around 55% in 2022, but the recent rally of Kogan shares has helped it regain quite a bit of the lost ground.

In fact, since mid-July, the Kogan share price has risen by around 45%.

What’s happened?

On 28 July 2022, Kogan announced a business update that appears to have excited investors.

One of the first things the company told the market was that it had returned to positive quarterly adjusted earnings before interest, tax, depreciation and amortisation (EBITDA) after a “successful ongoing recalibration of operating costs”.

This is likely a big deal for investors because a profit-making company is obviously more attractive than a loss-making business seemingly going backwards.

As a reminder, in the FY22 third quarter, Kogan said that its gross sales fell 3.8% (year over year) to $262.1 million. Adjusted EBITDA sank 110.5% to a loss of $0.8 million.

Kogan turns things around

While the FY22 fourth quarter was not exactly Kogan getting back to the best of the e-commerce boom during the COVID pandemic stage, a bounce back to underlying profit at the adjusted EBITDA level could be a good first step.

Kogan managed to grow its FY22 gross sales by 0.1% to $1.18 billion. Adjusted EBITDA profit did fall by 69% over the year, but Kogan management thinks there could be a boost for the business in the current environment.

CEO and founder Ruslan Kogan said:

Times are changing. In uncertain times, people don’t want to alter their lifestyle but they are happy to shift the way they shop. We know that in an environment where great value becomes even more important, Kogan serves an important need.

Our business was built for this. Efficiency and speed has been at the core of how the Kogan.com team operates for 16 years now.

We’re not resting on our laurels though. We are making the business leaner to enable us to pass on cost efficiencies to customers in the form of lower prices. A leaner company means we discontinue parts of the business that are not delivering value to customers or shareholders, and also gives us the flexibility to respond to significant ongoing changes in the macro environment.

My take on the Kogan share price

For Kogan shareholders – I’m not a shareholder – it has been encouraging to see the business regain some sentiment and regain a bit of profitability.

It’s hard to say what happens next in the short term. The economy ‘reopening’ after COVID-19 lockdowns and the current economic climate (of rising interest rates and inflation) have made things tricky.

The situation of having too much inventory was also a negative, though Kogan seems to have largely worked through that now. It’s also taking legal action against one of its logistics operators.

I think Kogan has the building blocks for being able to achieve good results in the future – a wide array of products, a strong customer base (Kogan First members grew 210% in FY22 to 372,000), the ability to generate operating leverage (as seen in previous financial years) and a desire to grow into new areas that could help growth, such as telecommunications, insurance and New Zealand.

If Kogan can improve its profit margins, then investor sentiment could grow even further.

The post Up 40% in a month, is it true ‘times are changing’ for the Kogan share price? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Could these devastated ASX shares make a roaring comeback?
• Are the stores themselves on sale?
• Kogan share price drops amid warehousing legal battle
• Will Kogan shares ever pay a dividend again?
• Why is the Kogan share price kicking goals on Thursday?

Motley Fool contributor Tristan Harrison 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 Kogan.com ltd. The Motley Fool Australia has positions in and has recommended Kogan.com ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/pEQiYrk

Investors in Fortescue Metals Group Limited (ASX: FMG) shares may increasingly be looking at what’s going on with Fortescue Future Industries (FFI). It does have some big aspirations. But, there’s a major factor that could impact how much FFI can pursue its goals.

When a business has major plans, it comes with a sizeable price tag. Money doesn’t just appear out of nowhere.

So, how can Fortescue run its normal business and grow FFI?

The strategy that management has employed is that its capital allocation framework includes an allocation of 10% of net profit after tax (NPAT) to fund FFI.

For example, in FY21, Fortescue generated net profit of US$10.3 billion. That allowed Fortescue to allocate US$1 billion to FFI, with an expenditure of US$122 million in FY21.

In FY22, FFI’s total expenditure was US$534 million, including US$148 million in capital expenditure and US$386 million in operating expenditure.

The miner is expecting FY23’s anticipated expenditure as between US$600 million to US$700 million, including US$100 million of capital expenditure and US$500 million to US$600 million of operating expenditure.

What will impact the Fortescue Future Industries dream?

Fortescue has committed to putting a specific percentage of its net profit each year into FFI.

But, there’s no specific dollar amount because Fortescue’s profit can be significantly variable.

Fortescue is one of the world’s largest iron ore miners. Its profit is heavily influenced by the iron ore price.

A commodity business generates revenue from how much of the commodity it produces and the price of that commodity.

It costs Fortescue roughly the same amount to mine a tonne of iron whether the iron ore price is US$10 higher per tonne or US$10 lower per tonne. Of course, it does have to pay a bit more to the government if the iron ore price is higher.

Fortescue’s net profit in FY21 was US$10 billion for the full year. So far, in FY22, investors have heard that the first six months to 31 December 2021 generated US$2.8 billion of net profit. We’ll soon hear about how the business performed in the second half and for the full year of the 2022 financial year. Of course, this will then influence how much Fortescue will allocate to FFI.

FFI has been spending less money than what it has been allocated.

With China being a key buyer of iron ore, it will have a major influence on Fortescue’s profit and therefore how it can progress with FFI.

What is it spending the money on?

It is doing a number of different things – it’s taking a global leadership position in green energy and technology and wants to get to the point where it can produce millions of tonnes of green hydrogen annually.

One of the first steps is that Fortescue Future Industries has advanced the construction of the 2GW capacity electrolyser manufacturing facility at the green energy manufacturing centre in Gladstone, Queensland.

It’s also advancing plans in a number of countries to produce and supply green hydrogen. For example, it recently entered into a memorandum of understanding (MoU) with Firstgas Group to identify opportunities to produce and distribute green hydrogen in New Zealand.

Fortescue share price snapshot

Over the past month, Fortescue shares have risen by around 14%

The post 1 factor that could drag on Fortescue Future Industries’ green dream appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Can shareholders have bigger dividends AND more spending on Fortescue Future Industries?
• Why is the Rio Tinto share price lagging the ASX 200 on Tuesday?
• ‘Self-interested billionaires’: Fortescue share price climbed today despite union war of words
• Guess which ASX All Ords share just inked a new deal with Fortescue
• How did the Fortescue share price respond last earnings season?

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.

from The Motley Fool Australia https://ift.tt/RL1mcfu

Fund manager Wilson Asset Management (WAM) has identified two top small-cap ASX shares in one of the portfolios it manages that could be investment ideas.

WAM operates several listed investment companies (LICs). Some focus on larger companies like WAM Leaders Ltd (ASX: WLE) and WAM Capital Limited (ASX: WAM).

There’s also one called WAM Microcap Limited (ASX: WMI) which focuses on small-cap ASX shares with a market capitalisation under $300 million at acquisition.

WAM says WAM Microcap targets “the most exciting undervalued growth opportunities in the Australian microcap market”.

These are the two small-cap ASX shares the fund manager outlined in its most recent monthly update:

Silk Laser Australia Ltd (ASX: SLA)

Silk Laser was described as one of Australia’s largest specialist clinic networks, offering a range of non-surgical aesthetic products and services.

The Silk Laser share price recovered in July after being sold off at the end of FY22 because of concerns about a recession and how consumers might tighten their spending, according to WAM.

The fund manager noted that the small-cap ASX share “strategically” acquired Victoria-based Unique Laser clinics, expanding Silk Laser’s presence on the east coast.

Why did WAM invest in the company? The investment team said:

Our investment thesis is based on growth in the overall non-surgical aesthetic market, supporting the consolidation and rollout of a greater number of clinics around Australia. We are positive on the outlook for the business as we see significant clinic rollout and consolidation opportunities for the company across Australia and New Zealand.

Dusk Group Ltd (ASX: DSK)

WAM described Dusk as an Australian specialty retailer of home fragrance products, offering a range of “premium quality products at competitive prices”.

One of the main things that caught investor attention about the small-cap ASX share during the month was that Dusk revealed a trading update and guidance for FY22 that was “ahead of market expectations.”

Dusk’s vertical retail model and long-term supply partnerships have allowed it to maintain “well-balanced” inventory levels to meet consumer demand.

WAM said:

We believe that Dusk Group is an undervalued growth company with a niche offering and a large store rollout opportunity into new regions such as New Zealand and the United Kingdom.

The post 2 ASX shares this fund manager thinks fits the bill for ‘undervalued growth’ appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 2 ASX shares to buy that have halved this year
• Dusk share price storms higher following FY22 trading update

Motley Fool contributor Tristan Harrison has positions in WAM MICRO FPO. The Motley Fool Australia’s parent company Motley Fool Holdings Inc. has recommended SILK Laser Australia Limited. The Motley Fool Australia has recommended Dusk Group Limited and SILK Laser Australia Limited. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/KVREXZY

Motley Fool Australia Chief Investment Officer Scott Phillips joined Natalia Cooper for Nine’s Late News on Thursday night to discuss Westpac Banking Corp (ASX: WBC)’s home loan rate increase, a jump in oil prices to cause pain at the pump, Transurban Group (ASX: TCL)’s profit and yet another fall in unemployment.

[youtube https://www.youtube.com/watch?v=ciw7xGnvqIs?feature=oembed&w=500&h=281]

The post Unemployment falls, oil rises, and we’re back on the roads. Scott Phillips on Nine’s Late News appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Up 10%, why has the Westpac share price smashed other ASX banks this past month?
• Everything you need to know about the latest Transurban dividend
• Transurban share price slumps despite revenue lifting to $3.4b
• Brokers say BHP and this ASX 200 share are buys
• Is the Westpac share price a buy following the bank’s latest update?

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 recommended Westpac Banking Corporation. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

from The Motley Fool Australia https://ift.tt/TMNzybR

The AMP Ltd (ASX: AMP) share price has strengthened in recent times and has jumped from lows of 95.5 cents on 30 June to rest at $1.13 apiece on Friday afternoon.

The financial services company is up almost 12% over the past month and also holds a 12% gain this year to date.

In broad market moves, the S&P/ASX 200 Financials Index (ASX: XFJ) has also soared from 52-week lows on 17 June.

Is the AMP share price making a comeback?

Zooming further out, the ASX financial share has fallen almost 78% over the past five years.

Moreover, the AMP share price struggled earlier in the week, following the release of the company’s half-year financial results the week prior.

As a result, analysts at JP Morgan cut their price target on the share to $1.10, a 12% reduction from previous estimates.

This is considered a fair price, according to the broker.

Meanwhile, the share is rated as a sell by three out of seven brokers covering the company, according to Refinitiv Eikon data.

There are also three brokers who rate AMP as a hold, with just one buy recommendation. The consensus price target is $1.04 apiece from this list.

Moreover, ASX financials have also strengthened as a basket and have pushed off yearly lows, as seen in the following chart.

This strength looks to have transposed onto the AMP share price over these past two months, as is seen on the chart.

AMP has gained around 5% over the past 12 months, while the broader ASX 200 Financials Index has lost around 5% over the same timeframe.

The post Up 12% in a month, is the AMP share price finally on the comeback trail? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Why is the AMP share price having such a lousy start to the week?
• Looking to buy AMP shares? Read this first
• Here are the 3 most heavily traded ASX 200 shares on Thursday
• Why AMP, OFX, Rio Tinto, and Telstra shares are dropping
• AMP share price slides as $1.1b pledged to investors

Motley Fool contributor Zach Bristow 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.

from The Motley Fool Australia https://ift.tt/wzfepJF

ASX shares are broadly edging higher today, sending the All Ordinaries Index (ASX: XAO) up 0.3%.

But one little-known ASX share is leaving those gains in the dust, soaring 15% higher.

Any guesses?

If you said diversified financial services organisation Thorn Group Ltd (ASX: TGA), give yourself a gold star.

Why is the Thorn Group share price rocketing?

The Thorn Group share price is soaring after the ASX share announced a special dividend payment as well as a proposed capital return and share consolidation.

The company opted to make the special dividend payment based on Thorn’s strong cash balance and the simplification of its business. According to the release, the directors consider that Thorn is presently holding funds in excess of its requirements.

The fully franked special dividend of 3 cents per share will total approximately $10.4 million. The ex-dividend date is 24 August and the special dividend will be paid on 8 September.

Thorn’s dividend reinvestment plan (DRP) won’t apply to the special dividend.

Also sending the ASX share higher today was the announcement that Thorn’s directors are considering an additional 12 cent per share return of capital, worth around $41.7 million, along with a share consolidation in Q3 FY23. That would be subject to both regulatory and shareholder approvals.

Commenting on the developments, Thorn’s CEO, Pete Lirantzis said:

We are delighted to be providing our shareholders with these returns following a three-year program to transform the company, both in a cash and operating position.

We are now a simpler and more efficient organisation well placed to grow further in the SME market with an expanded finance offering through a sophisticated technology solution.

Our balance sheet has been strengthened with the sale of assets, including Radio Rentals, and our capital position has enabled us to announce a special dividend and planned return of capital to shareholders.

How has this little known ASX share been tracking?

Over the past 12 months, the Thorn share price has gained 42%. That compares to a full-year loss of 5% posted by the All Ordinaries.

Atop the price moves, the ASX share notes that “Collectively, shareholders have already received a total return of capital of approximately $52.6 million for the last two financial years.”

The post Guess which little-known ASX share is soaring 15% on special dividend news appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Everything you need to know about the latest AGL dividend
• Guess which ASX copper share has exploded 182% this week?
• Accent share price jumps despite 59% profit drop
• Why is the PTB share price rocketing 35%?
• Everything you need to know about the latest Newcrest dividend

Motley Fool contributor Bernd Struben 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.

from The Motley Fool Australia https://ift.tt/cUawyL0

The AGL Energy Limited (ASX: AGL) share price is sliding on Friday following news of the company’s financial year 2022 earnings and final dividend.

As The Motley Fool Australia reported earlier, the energy producer and retailer has offered shareholders a 10-cent unfranked dividend for the six months ended 30 June.

Right now, the AGL share price is 2.3% lower than its previous close, with stock in the S&P/ASX 200 Index (ASX: XJO) utilities giant swapping hands for $7.97 apiece.

Let’s dive into the company’s full-year earnings and all investors need to know about its latest dividend.

AGL share price falls alongside dividends

The AGL share price is suffering on Friday after the company posted a 10-cent dividend – more than 70% less than it offered at the end of financial year 2021.

The energy company revealed its statutory profit reached $860 million for the 12 months ended 30 June – up from a $2 billion loss. Though, its underlying profit slumped 58% year-on-year to come in at $225 million.

It also saw its underlying earnings before interest, tax, depreciation, and amortisation (EBITDA) slump 27% to $1.2 billion.  

On the back of such earnings, the company posted its lowest regular dividend since it listed on the ASX. That sees its full-year payout come to 26 cents, marking a 65% drop year-on-year and representing a payout ratio of 75%.

The company handed investors 75 cents in dividends in financial year 2021, including a 10-cent special dividend. That itself represented a 23.5% drop on those of financial year 2020.

However, as The Motley Fool Australia reported earlier this week, many brokers were tipping AGL to pay a single-digit final dividend for last fiscal year. Thus, it’s likely brought a positive surprise for some.

The company has also scrapped its dividend reinvestment plan (DRP) this time around, given the status of its review into its strategic direction. It intends to reinstate the DRP when circumstances allow.

AGL shares will trade ex-dividend on 1 September and its latest offering will begin to hit investors’ accounts on 27 September.

The post Everything you need to know about the latest AGL dividend appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#43B02A”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#43B02A”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• AGL share price dips after 58% profit slash
• Earnings preview: Here’s which ASX shares are reporting today
• Hoping to pounce on AGL shares? Here’s what to watch when the energy giant reports this week
• Guess how much AGL has paid in dividends over the past 5 years?
• AGL share price down amid Fortescue Future Industries hydrogen hub news

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.

from The Motley Fool Australia https://ift.tt/qonYOat

The All Ordinaries Index (ASX: XAO) has had a fairly positive week as we head towards the weekend this Friday. Since the start of the week, the All Ords has put on a healthy 1.2% or so. But that’s nothing compared to the mind-blowing gains of one ASX copper share.

So let’s talk about the Cobre Ltd (ASX: CBS) share price. Last Friday, the Cobre share price closed at 14 cents. Today, the ASX copper share is going for 41 cents. That’s up 15.7% today, and an extraordinary 182% just since last Friday.

So what on earth is going on with this company to give its shareholders such fortune-making gains?

How has ASX copper share Cobre exploded 182% in a week?

Well, as we covered on Tuesday this week, these gains started when Cobre announced “a new significant copper intersection” at its Ngami Copper Project in Botswana. Here’s some of what Cobre chair and managing director Martin Holland said on these results at the time:

We’re delighted with the results from the latest drill hole at NCP, which have significantly extended the known footprint of mineralisation over more than 4km.

Importantly, all the results so far indicate at the target remains open-ended to the northeast and is larger than previously anticipated.

The footprint of mineralisation now extends over 4km, which is in line with the largest known deposits in the Kalahari Copper Belt.

Building on this announcement, we again heard from the company just yesterday. This time, Cobre announced that the company had successfully had five exploration licenses in Botswana renewed for an additional two years by the Botswana Department of Mines.

Here’s some of what Holland had to say on that news:

The renewal of these exploration licenses has come at a significant time for the Company as we
commence an aggressive exploration program in Botswana.

The renewal cements the belt–scale opportunity provided by our extensive land package in the Kalahari Copper Belt, and will support an additional exploration pipeline of targets for future drill testing.

So it’s been an avalanche of good news for Cobre.

Investors are clearly very excited over this company’s future, especially now these regulatory hurdles have been cleared. So I think this ASX copper share is definitely one to watch going forward.

At the last Cobre share price, this ASX copper share has a market capitalisation of $70.73 million.

The post Guess which ASX copper share has exploded 182% this week? appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• 50% off: Why I think this ASX All Ords share could be a sparkling buy
• This ASX lithium share is surging 45% today. What’s going on?
• 3 ASX mining shares rocketing higher today on new finds
• Cobre share price zooms 40% higher on new copper discovery
• Guess which ASX All Ords share just inked a new deal with Fortescue

Motley Fool contributor Sebastian Bowen 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.

from The Motley Fool Australia https://ift.tt/LJKbWHM

The Accent Group Ltd (ASX: AX1) share price is climbing today following the release of the company’s full-year results for FY 2022.

At the time of writing, the footwear retailer’s shares are up 4.98% to $1.58.

Let’s take a look at what Accent reported.

Accent share price rises amid hit to bottom line

Accent delivered its FY 2022 results for the 12 months ended 26 June 2022. Here are some of the key financial highlights:

• Total sales increased 11.3% year-on-year to $1.27 billion
• Earnings before interest, tax, depreciation and amortisation (EBITDA) of $213.6 million, down 11.8%
• Net profit after tax (NPAT) of $31.5 million, down 59.1%
• Earnings per share (EPS) of 5.81 cents, down from 14.21 cents in FY21
• Final dividend of 4 cents per share, fully franked, bringing the full-year dividend to 6.5 cents per share, down 42.2%

What happened in FY 2022?

Accent reported a mixed financial performance as it dealt with a COVID-19-impacted environment for much of FY 2022.

More than half of the group’s total network of 400 stores was shut between the months of July and October due to government-mandated lockdowns.

In addition, the Omicron variant impacted customer traffic levels and confidence. The negative impact of this disruption on sales, gross margin, and cost of doing business was significant, resulting in disappointing financial results for the year.

In FY 2022, Accent opened 139 new stores and closed 15 stores where required rent outcomes could not be resolved.

Notably, total online sales grew to $263.8 million, an increase of 25.7% on the prior year. This accounted for 24.4% of the company’s total retail sales.

What did management say?

Accent’s CEO Daniel Agostinelli had this to say about the results:

The operational disruption experienced in the FY22 year, and the associated impact to the financial results, has been well reported. In the context of the operational challenges and focus that was required to manage the day-to-day business, I am very pleased with the continued progress in executing our growth plan initiatives, and in addition to our customers and suppliers…

What’s the outlook for FY 2023?

For the first seven weeks in FY 2023, Accent advised that trading conditions have been positive due to an undisrupted retail environment as well as being supported by deliveries of new product.

Total sales are up 48.9% on the back of stores open this year that were closed last year, and new store openings. Like-for-like retail sales are up 18.9%.

Despite not providing guidance for FY 2023, Agostinelli concluded:

Management recognises that there is some uncertainty in both the economic outlook and global supply chain. We also feel we have demonstrated our ability through the COVID-19-impacted period to build a higher quality business with good growth prospects that can weather the challenges and come out stronger the other side…

Accent share price snapshot

Since the beginning of 2022, the Accent share price has fallen by 35%.

In comparison, the S&P/ASX 200 Consumer Discretionary (ASX: XDJ) sector is down 15% for the current calendar year.

Accent commands a market capitalisation of approximately $815.51 million.

The post Accent share price jumps despite 59% profit drop appeared first on The Motley Fool Australia.

(function() {
function setButtonColorDefaults(param, property, defaultValue) {
if( !param || !param.includes(‘#’)) {
var button = document.getElementsByClassName(“pitch-snippet”)[0].getElementsByClassName(“pitch-button”)[0];
button.style[property] = defaultValue;
}
}

setButtonColorDefaults(“#0095C8”, ‘background’, ‘#5FA85D’);
setButtonColorDefaults(“#0095C8”, ‘border-color’, ‘#43A24A’);
setButtonColorDefaults(“#fff”, ‘color’, ‘#fff’);
})()

More reading

• Analysts say these top ASX dividend shares are buys
• Brokers name 2 top ASX dividend shares to buy
• I think these 2 ASX dividend shares are buys for income in August
• Leading brokers name 3 ASX shares to buy today
• Why Accent, Humm, IAG, and Webjet shares are dropping

Motley Fool contributor Aaron Teboneras 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.

from The Motley Fool Australia https://ift.tt/634eObH