Tag: Stock pick

The Boss Energy Ltd (ASX: BOE) share price hasn’t exactly been setting the world on fire in recent months with the company in December announcing it would have to do a major rethink of its mining plans.

This came about following a review of its Honeymoon uranium mine in South Australia, which found “significant deviation from the assumptions underpinning the company’s 2021 enhanced feasibility study (EFS)”.

The company added:

This in turn would be expected to impact life of mine production and cost from FY27 onwards, primarily due to less continuity of higher-grade mineralisation, mineralisation not overlapping, less leachability and smaller wellfields.

The company withdrew the EFS and said it should no longer be relied upon as a guide to future performance.

Production still on track

Despite the setbacks, the company said it was still on track to deliver its expected FY26 production of 1.6 million pounds of uranium at an all-in sustaining cost of $75 to $80 per pound.

The company was also planning to complete a new feasibility study by the third quarter of calendar year 2026.

Shaw and Partners has taken all of this on board, and crucially, with new assumptions about the uranium price going forward, has upgraded its price target for Boss Energy shares.

That said, the Shaw analysts are keen to know more about the company’s plans for the new mine designs.

As they said:

The Honeymoon review has identified that a change to the well field design, using larger well spacing, could result in a more efficient operation. We need to do more work to understand this. The concept appears to be that by slowing down the rate of flow through the orebody, the uranium will be under leach conditions for longer, which means higher recovery and lower reagent consumption. This will also allow Boss to lower the cut-off grade, and recover more of the lower grade uranium. However – this will also mean more well fields will need to be in operation at the same time to deliver the same overall production rate.

Bullish on the uranium price outlook

Crucial to the share price upgrade, the Shaw team said, was a sharp spike in the uranium price in January – from US$85 per pound to US$102 per pound in just three days – which they said was a sign that “the coming uranium super-cycle is likely to see extremely quick and outsized moves”.

They added:

The coming uranium supply deficits could exceed 300Mlb/yr, and supply of uranium may become the rate limiter for nuclear power generation. We were already above market, but we upgrade our uranium price forecast to US$175/lb in 2027 (from US$150), US$200/lb in 2028 (from US$150) and lift our long-term price from US$90/lb to US$120/lb from 2032.

Feeding this into their model, the Shaw team has upgraded its 12-month share price target for Boss Energy from $2.63 to $3.15.

This compares with just $1.65 currently, and would be a 91% return if achieved.

The post Why is this broker upgrading its price target for Boss Energy? appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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.

Owners of Telstra Group Ltd (ASX: TLS) shares can rejoice because the latest payout has just been announced. The Telstra dividend was bigger than many analysts expected.

The ASX telco share revealed positive numbers across the board.

Total income rose 0.2% to $11.8 billion, operating expenses declined 2.1% to $7.4 billion, operating profit (EBIT) grew 92% to $2 billion, net profit for Telstra share owners increased 9.4% to $1.12 billion, earnings per share (EPS) increased 11.2% to 9.9 cents and cash EPS rose 19.7% to 14 cents.

Thanks to that sizeable profit increase, the business was able to deliver a larger payout.

Telstra dividend

On the back of the cash earnings growth, the board of directors declared an interim dividend per Telstra share of 10.5 cents, which will be 90.48% franked. This represents a year-over-year increase of 10.5%, though the FY25 half-year dividend was fully (100%) franked.

Telstra said in its report that it aims to deliver a sustainable and growing dividend. It reminded investors that its ‘connected future 30’ ambition remains to deliver mid-single digit growth in cash earnings.

The business also announced an increase to its on-market share buyback from up to $1 billion, to up to $1.25 billion in FY26. It has used $637 million during the half-year period on the back of its earnings growth and the strength of the balance sheet.

The share buyback will support EPS and the dividend per share.

This increased share buyback and the larger dividend reflect the board and management’s confidence in the financial strength and outlook. The announced payment represents a dividend payout ratio of 75% of its cash EPS.

Important dates for the payout

Owners of Telstra shares are probably wondering when the dividend will hit their bank accounts.

The ASX telco share has announced that it will be paid on 27 March 2026, just over a month to wait.

If investors want to have entitlement to this payout, then they need to own Telstra shares on the ex-dividend date. That’s essentially the cutoff date. Investors need to buy shares before this date to receive the payout from the Australian telco giant.

The ex-dividend date for this payment is 25 February 2026, therefore interested investors will need to buy shares before the end of ASX trading on 24 February 2026.

Instead of receiving a cash dividend, investors can receive new Telstra shares by deciding to take part in the dividend re-investment plan (DRP). If investors do want to take part in the DRP, the election date for the DRP is 27 February 2026, which is just over a week away.

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

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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 no position in any of the stocks mentioned. The Motley Fool Australia has positions in and has recommended Telstra Group. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in Universal Store Holdings Ltd (ASX: UNI) were trading higher on Thursday morning after the company delivered a profit result which bested analyst expectations.

The youth-focused fashion retailer said in a statement to the ASX that group sales for the first half had come in at $209.6 million, up 14.2% on the previous corresponding period.

Sales in the core Universal Store division were $174.8 million, up 11.9%, or 8.7% on a like for like basis.

Sales in the Perfect Stranger division were up 41.5% to $17.8 million or up 14.8% on a like for like basis, while CTC sales were up 4.8% to $23.2 million.

The company’s underlying net profit was up 22% to $28.3 million.

Universal Store also declared a fully-franked interim dividend of 26 cents per share, up from 22 cents for the same period last year.

Delivering across the board

The company’s Chief Executive, Alice Barbery, said regarding the results:

The group delivered a solid first half result, with robust sales growth and gross margin expansion. This growth reflects the team’s continued excellence in providing our customers with on-trend products for their occasions, a service-oriented experience and engaging communication. We note that the youth fashion customer remains discerning, choosing to spend on quality, on-trend clothing from brands they love. The group continues to focus on cost discipline as we build our team and system capability to support our future growth.

From a divisional perspective, the company said Universal Store’s own-brand products performed well.

The company said:

The group’s private brands performed well during the period with Neovision, Perfect Stranger and Common Need remaining the top three brands within Universal Store. Neovision continues to resonate with customers, representing a 19% sales mix contribution to Universal Store format sales.

Online sales grew 6.3% in the first half and represented 12.9% of sales, while four new stores were opened and one store was closed as planned, as its centre undergoes refurbishment.

The company had 87 Universal Store outlets at the end of the half.

In the Perfect Stranger division, three new stores were opened, and one relocated, with store numbers now sitting at 22.

The company said:

The company has invested in dedicated resources to support PS brand, marketing and product capabilities. Management’s focus is on growing brand awareness and evolving the product range, focusing on quality and refined collections.

In the CTC network, there were now nine stores, the company said, following one new store opening during the half.

Jarden analysts had a look at the profit result and said net profit beat consensus expectations by about 7%.

Jarden has a price target of $10.69 on the shares, which were trading 3.6% higher on Thursday morning at $8.69.

Universal Store was valued at $643.7 million at the close of trade on Wednesday.

The post Universal Store trading higher as profits beat expectations appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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 Universal Store. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Shares in IPH Limited (ASX: IPH) climbed 10% on Thursday (as at the time of writing) after the intellectual property services group announced its half-year results, which delivered higher earnings, strong cash generation, and an increased interim dividend.

The result reflects improved performance in Canada and Asia, helping offset continued weakness in the ANZ market.

What did IPH report?

IPH reported revenue of $363.9 million for the half year to 31 December 2025, up 6.5% on the prior corresponding period.

Underlying EBITDA rose 6.6% to $107.1 million, with margins holding steady at 29.3%. Statutory net profit after tax increased 10.5% to $41.2 million, while underlying NPATA lifted 2.6% to $62.6 million.

Basic earnings per share rose to 15.8 cents, up 12.0%, while underlying EPS increased 3.9% to 24.0 cents.

Importantly, the company declared an interim dividend of 19 cents per share, up 11.8% on the prior period. The dividend is 20% franked and represents an 81% payout of cash-adjusted NPAT.

What else do investors need to know?

The headline strength was driven by a strong turnaround in Canada and a return to growth in Asia.

On a like-for-like basis, Canada delivered revenue growth of 7.3% and an 18.9% increase in underlying EBITDA, reflecting organic growth, acquisition synergies, and cost discipline. Asia returned to growth, with like-for-like revenue up 3.5% and EBITDA up 1.5%.

In contrast, ANZ remained under pressure. Like-for-like revenue fell 6.1%, and EBITDA declined 10.6%, largely due to the continued slowdown in US-originating PCT patent filings.

IPH also demonstrated strong cash conversion, with EBITDA converting to gross operating cash flow at 101%. Net debt reduced to $339.3 million, with leverage sitting at 1.8x — comfortably within the company’s target range.

Management also announced an on-market share buy-back program of up to 12.2 million shares, adding further capital management flexibility.

What did management say?

CEO Dr Andrew Blattman described the half as demonstrating the group’s resilience and diversification of its global footprint.

He highlighted the strong turnaround in Canada, noting organic revenue growth and acquisition synergies, although recovery in Canadian IP office workflow backlogs remains gradual.

In Asia, management pointed to encouraging growth outside Singapore, with filings across the broader region up 7.3%.

In ANZ, the focus remains on refocusing business development efforts away from US-originating filings and continuing cost discipline to protect margins.

Looking ahead, the company flagged continued strong cash generation and disciplined capital management as key themes for FY26.

Share price snapshot

Despite today’s rally, IPH shares are still down 22% over the last 12 months amid concerns around patent filing volumes, particularly in Australia and New Zealand.

With earnings from outside the ANZ region now accounting for the majority of earnings and leverage comfortably controlled, IPH’s earnings could stabilise.

The post IPH shares surge 10% as profit lifts and dividend jumps appeared first on The Motley Fool Australia.

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Motley Fool contributor Kevin Gandiya has no positions 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 IPH Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.

Sonic Healthcare Ltd (ASX: SHL) shares are charging higher on Thursday after the pathology and radiology giant released its half-year results.

At the time of writing, the Sonic Healthcare share price is up 12.29% to $23.84.

Here’s what the company reported.

Double-digit revenue and earnings growth

For the six months ended 31 December 2025, Sonic Healthcare delivered a solid performance across its global operations.

Key highlights included:

• Revenue up 17% to $5.45 billion

• EBITDA up 10% to $907 million

• Net profit up 11% to $262 million

• Cash generated from operations up 10% to $682 million

• Earnings per share (EPS) up 8% to 53.1 cents

Management said the result was underpinned by strong organic growth, disciplined cost control, and improving operational performance across most regions.

Sonic confirmed it remains on track to achieve its previously issued full-year EBITDA guidance of $1.87 billion to $1.95 billion on a constant currency basis.

By sticking with its earnings outlook, the company signalled that trading conditions remain supportive. It also indicates margin discipline is holding, even as parts of the healthcare sector face ongoing cost pressures.

Dividend lifted again

Sonic declared an interim dividend of 45 cents per share, up 2.3% on last year. The dividend will be 60% franked.

Key dates to note are:

• Ex-dividend date: 4 March 2026

• Record date: 5 March 2026

• Payment date: 19 March 2026

The company said its progressive dividend policy remains intact, targeting a payout ratio of 70% to 80% of net profit.

Performance across key regions

Several of Sonic’s key markets posted solid growth.

Germany delivered strong statutory revenue growth of 52%, boosted by acquisitions and solid organic momentum. The UK reported revenue growth of 30%, driven by new NHS contracts and private-sector wins.

In Australia, pathology revenue grew 5% organically, supported by Medicare indexation and strength in the specialist and hospital segments. Radiology also saw organic revenue growth of 7%, aided by higher value modalities such as MRI and PET.

The United States posted more modest growth, with revenue up 3% on a statutory basis. Management acknowledged margin pressure in parts of the US business but said multiple improvement initiatives are underway.

Capital management initiatives

Sonic also outlined capital management priorities, including maintaining its balance sheet and selectively pursuing acquisitions.

The company is progressing a sale and leaseback of its Brisbane hub laboratory, with estimated proceeds of $450 million to $500 million, targeting completion in June 2026.

There is also potential for share buybacks using surplus capital from property transactions.

Foolish Takeaway

Sonic Healthcare’s half-year result delivered a solid mix of earnings growth, steady margins, a higher dividend, and reaffirmed full-year guidance.

After a challenging period for global healthcare stocks, today’s 12% surge points to renewed confidence in Sonic’s outlook.

With diversified global operations, tight cost control, and reaffirmed guidance, Sonic looks well placed for FY26.

The post Why Sonic Healthcare shares are rocketing 12% on blockbuster half-year results appeared first on The Motley Fool Australia.

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

Shares in Bega Cheese Ltd (ASX: BGA) have hit a new high watermark for the past 12 months after the company delivered a solid rise in net profit.

The company said in a statement to the ASX on Thursday morning that first-half revenue had come in at $1.87 billion, up 5%, while net profit was 55.3% higher at $46.9 million.

Strength across both major divisions

The company said its Branded Products division delivered a normalised EBITDA of $112.5 million, up 8%.

The company added:

Bega Group fuelled growth in core categories by launching new products to support evolving consumer needs and increased marketing investment to support its leading brands. The company continued to expand sales with growth in grocery, foodservice and international channels in line with strategic objectives. Additionally, the transformational manufacturing initiatives previously announced remain on track with cost savings projected in 2H FY2026 and FY2027.

The company also delivered strong results in its bulk division, with segment EBITDA of $41.1 million, up 68%.

The company said:

This significant improvement is due to a better initial alignment of farm gate milk prices to dairy commodity prices, incremental milk supply, additional toll manufacturing, and a focus on higher value commodities and nutritionals.   

Bega declared an interim dividend of 7 cents per share, payable on April 2, up from 6 cents for the same period last year.

The company also upgraded its full-year guidance to a normalised EBITDA range of $222 to $227 million, compared with $215 to $220 million given at the company’s annual meeting late last year.

Bega added that it had a strong balance sheet, which positioned it well to invest in future growth plans.

Bega Group had consolidated net debt of $219.8 million as at 28 December 2025, compared to $207.2 million as at 29 December 2024, an increase of $12.6 million. The increase in net debt was primarily from an increase in working capital (partly due to higher milk prices) and a reduction in the utilisation of the Trade Receivable Facility. Bega Group’s normalised EBITDA to net debt leverage ratio decreased from 1.3 times at the end of 1H FY2025 to 1.2 times at 28 December 2025.

Bega shares traded as high as $6.37 in early trade on Thursday, which was a 12-month high for the stock, which has improved from $4.85 over the past year.

The shares were changing hands for $6.22, up 2.5% by mid-morning.

Bega was valued at $1.85 billion at the close of trade on Wednesday.

The post Bega Cheese shares hit a 12-month high on strong profit numbers appeared first on The Motley Fool Australia.

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Motley Fool contributor Cameron England 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.

The Ramelius Resources Ltd (ASX: RMS) share price is in focus after announcing the first delivery of Never Never deposit ore to its Mt Magnet processing plant, and a major reduction of its gold hedge commitments.

What did Ramelius Resources report?

• First Never Never deposit ore delivered from Dalgaranga to Mt Magnet processing plant
• 31,000 tonnes of development ore graded at 3.6g/t (3,600 ounces) hauled by end of January 2026
• Never Never maiden ore reserve: 7.0Mt at 7.3g/t for 1.6Moz gold, with 11-year mine life
• Mine plan targets 1.8Moz gold at an AISC of A$1,128/oz
• Closed out FY27 gold forward contracts at a cost of A$28.4 million
• No gold hedge contracts remaining from 31 March 2026

What else do investors need to know?

Ramelius has brought forward Never Never development ore delivery to Mt Magnet within 202 days of completing its Spartan Resources combination. The company now plans to blend the lower grade development ore with other Mt Magnet sources from March, ramping up to process higher grade material in the June quarter.

With the hedge book now largely closed, Ramelius has increased exposure to spot gold prices, which averaged around A$7,000/oz in February. The move will see a one-off hedge closure expense of A$28.4 million and a forecast $47.5 million revenue dip in the March quarter. However, this allows full participation in current gold price strength going forward.

Development at the Never Never mine remains on schedule and within budget, underpinning the group’s 5-year growth plan and production targets.

What did Ramelius Resources management say?

Managing Director Mark Zeptner said:

Since finalising our combination with Spartan Resources in July 2025, we have been focused on delivering the first Never Never ore to the Mt Magnet production hub in accordance with our 5-Year Growth Pathway.

This is a key milestone in supercharging the Mt Magnet production hub to up to 380,000 ounces in annual production and realising our vision to become a 500,000-ounce producer by FY30.

At this important juncture we have also elected to close-out our FY27 gold forward contract hedge book and pre-deliver June 2026 Quarter contracts in this March 2026 Quarter. By doing this, we will have increased exposure to the strong gold price.

What’s next for Ramelius Resources?

Management is aiming to boost annual gold production to 380,000 ounces at the Mt Magnet hub as part of its strategy to become a 500,000-ounce producer by FY30. Ramp-up of higher-grade Never Never ore is scheduled from the June 2026 quarter, as plant tuning continues.

With the forward gold book now closed, future earnings will be more closely tied to movements in the gold price. Focus remains on safe, on-budget development and further growth from the company’s regional projects.

Ramelius Resources share price snapshot

Over the past 12 months, Ramelius Resources shares have risen 72%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post Ramelius Resources delivers first Never Never ore, cuts major gold hedges appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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. This article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

Lifestyle Communities Ltd (ASX: LIC) shares have plunged in morning trade on Thursday. At the time of writing, the shares have crashed 15.68% to $4.84 a piece. The drop follows the ASX REIT’s half-year results for FY26, which it posted ahead of the market open this morning.

The decline means the shares are now 6.20% lower year to date and 50.71% below where they traded one year ago.

What did Lifestyle Communities post in its H1 FY26 results?

Here’s what the ASX REIT posted for the half-year ended 31st December 2025:

• Statutory profit after tax down 30% to $15.8 million
• Operating profit after tax down 29% to $16.1 million
• Net debt of $323.6 million
• Dividends remain on pause

What happened in H1 FY26?

Lifestyle Communities reported statutory profit after tax of $15.8 million for the first half of FY26, down significantly (30%) from $22.7 million in the first half of FY25. The decline reflects lower new home settlements (128 in H1 FY26 versus 137 in H1 FY25), impacted by lower sales rates in earlier periods, reduced DMF revenue following a notice of listing from the Court of Appeal – Supreme Court of Victoria, and a greater portion of interest costs expensed against the land bank. 

The company also posted operating profit after tax of $16.1 million for the first half of FY26, also down considerably from H1 FY25.

Lifestyle Communities recorded double-digit growth in net sales from new homes from the prior periods, up 168% from H1 FY25 and up 12% from H2 FY25. The team also delivered the strongest established net sales result in recent periods, up 40%. 

There was steady growth in rental income from operating communities, up 11.9%, driven by new home settlements and CPI-linked rental increases.

Positive operating cash flows reached $41.2 million for the six-month period, up from negative $12.9 million this time last year. The company said the improvement is due to a reduction in development expenditure, which reflects disciplined management of build rates, and completion of civil and infrastructure works at communities in progress. 

Meanwhile, its net debt balance was down from $460.5 million in June 2025 to $323.6 million as of December 2025.

Management decided it would continue to pause dividends and retain the capital within the business until the market improves.

What’s the outlook for the ASX REIT for FY26?

Lifestyle Communities Chief Executive Officer, Henry Ruiz, said that while the Victorian property market showed some improvement during the period, it has shown recent signs of softening consumer sentiment.

He added, “In 2HFY26, shareholders can expect to see further de-leveraging of the balance sheet and full year positive operating cash flow. We will continue to be market led in our development and sales approach, noting that due to the lag between sales and settlements, lower prior period sales rates will temper future settlements.”

The post Shares in this ASX REIT crash 15% on its half-year results appeared first on The Motley Fool Australia.

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Motley Fool contributor Samantha Menzies 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.

The Eagers Automotive Ltd (ASX: APE) share price is in focus after the company delivered record full-year revenue of $13.05 billion and lifted statutory profit after tax by 17% to $261.2 million.

What did Eagers Automotive report?

• Revenue jumped 16.5% to a record $13,045.2 million (FY24: $11,193.7 million)
• Statutory net profit after tax rose to $261.2 million (FY24: $222.9 million)
• Underlying EBITDAI increased 13% to $620.9 million (FY24: $550.4 million)
• Final fully franked dividend of 50 cents per share, total FY25 dividend unchanged at 74 cents
• Strong liquidity at year end: $1.79 billion, with net debt reduced to $100 million (FY24: $813 million)
• Record results from both franchised dealers and the easyauto123 pre-owned business

What else do investors need to know?

Eagers Automotive maintained its record full-year dividend, reflecting management’s confidence in ongoing strategy execution and business strength. The company further reduced net debt to just $100 million and expanded liquidity, positioning itself securely for future opportunities.

During FY25, the group announced a strategic investment to acquire a 65% stake in CanadaOne Auto with completion expected in Q1 2026, marking the company’s entry into the Canadian market. A new alliance was also formed with Mitsubishi Corporation, including a direct investment in the easyauto123 business.

Eagers grew new vehicle market share to 13.9%, up from 11.5% in FY24, and claimed a 34% share of the New Energy Vehicle market. Inventory was well managed, holding 56 days’ supply at year-end, while cost control drove productivity improvements.

What’s next for Eagers Automotive?

Eagers Automotive is guiding for continued profitable growth and plans to further increase market share in Australia and New Zealand. Management expects another year of revenue growth supported by a robust new car market, strong pre-owned vehicle demand, and ongoing scale benefits from its diversified operations.

The company will focus on executing its Next100 Strategy by leveraging cost discipline, productivity improvements, and disciplined expansion—particularly through strategic alliances and the new Canadian acquisition. While inflation remains a consideration, Eagers says customer demand is resilient, and the business remains poised to capitalise on organic and acquisition-led growth opportunities.

Eagers Automotive share price snapshot

Over the past 12 months, the Eagers Automotive shares have risen 94%, outperforming the S&P/ASX 200 Index (ASX: XJO) which has risen 8% over the same period.

View Original Announcement

The post Eagers Automotive posts record FY25 earnings appeared first on The Motley Fool Australia.

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Motley Fool contributor Laura Stewart 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 Eagers Automotive Ltd. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips. his article was prepared with the assistance of Large Language Model (LLM) tools for the initial summary of the company announcement. Any content assisted by AI is subject to our robust human-in-the-loop quality control framework, involving thorough review, substantial editing, and fact-checking by our experienced writers and editors holding appropriate credentials. The Motley Fool Australia stands behind the work of our editorial team and takes ultimate responsibility for the content published by The Motley Fool Australia.

The Magellan Financial Group Ltd (ASX: MFG) share price was one of the strongest performers this week after reporting its recent result. It rose 12% after releasing the numbers.  

The fund manager is benefiting from the ongoing growth of its investments in fund manager Vinva and particularly investment bank Barrenjoey.

While Magellan’s operating profit was flat and statutory net profit was down 27%, the partnership income (from its investments) rose 109%.

Let’s take a look at what experts thought of the result.

UBS view on the numbers

The broker noted that the associate profits are now “becoming a more meaningful earnings driver” than the investment business.

While revenue pressure in the funds management side of the business, it’s expected to see profits continue to decline. UBS thinks the market will place greater focus on the value of its associates and liquid assets.

Magellan’s operating profit was around 20% stronger than what UBS was expecting and it was a similar bang for the dividend per share too. This was despite the core investment business missing on expectations because of lower net client revenue and a greater compression of management fees due to an expected shift of the mix of earnings, increased client rebates and repricing.

The contribution from associates was $25.7 million compared to the $20 million expectation by UBS. The Barrenjoey contribution increased by $10.5 million year-over-year.

Looking at the earnings composition, UBS noted that the partnership division contributed 54% of the operating result, which exceeded the core investments divisions.

What does the expert think of the Magellan share price?

UBS thinks that the principal investments and liquid assets underpin around 80% of Magellan’s valuation.

The broker also said:

Long term, we see ‘core’ Investment Management operating profit share reducing to 30% of the mix by FY30. Nevertheless, while the medium-term earnings outlook overall continues to display net profit headwinds, we expect the multiple re-rate away from a distressed fund manager to a higher multiple principal investor will be more gradual – at least until there is evidence that Investment profits have largely rebased and there is greater earnings visibility around more opaque B*/vinva profitability.

The broker has a neutral rating on the fund manager, with a price target of $9.90. That implies a possible rise of 8.5% over the next year.

UBS also forecasts that the business could deliver an annual dividend per share of 66 cents in FY26, translating into a potential grossed-up dividend yield of 10.3%, including franking credits.

The post Are Magellan shares an underrated buy with a 10% dividend yield? appeared first on The Motley Fool Australia.

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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 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.