...and other clichés of our time.
I thought I would tease you with this one and try and get you to read without prejudice. So here is an interesting looking chart with this stock up over 6 fold over the last five years, what can it be? Wow this must be a really exciting growth stock. So what about some history and financials.
Firstly the earnings have gone from 15 cents to 95 cents over the period so also up 6 fold or around 45% per annum.
Dividends have gone from 12 cents to 36 cents - so only trebled as cover has been built but still nearly 25% per annum.
Now this is where it gets interesting because they have achieved this on turnover that has gone up by only €1.2 billion from around €5.2 billion to nearly €6.5 billion or just 4.25% per annum huh?
On the financial metrics it has historically had operating margins of close to 10%, a ROCE of about 12% and a ROE 15%, so reasonable quality. It has revenues of over £5 billion and a market cap to match and an enterprise value of about £6.6 billion it's no minnow. In their recent results they reported operating profit up by 22%, earnings up by 37% and ROCE up to over 15%, while the dividend was raised by a useful 29%. Going forward it is forecast to see earnings up by around 10% this year and the dividend by 18% which leaves it on about 12x with a 3.4% yield 2.4 times covered. So reasonable value for such a great growth stock.
So what is it I hear you cry - well can you come back next week when I will open the box and see what's inside?