Boart Longyear Ltd. : Trend line in support
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06/21/2012 | 10:57am
Opinion : Bullish above 2.9 AUD
Target price : 3.84 AUD
Stop loss: 2.85 AUD
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AUSTRALIAN SECURITIES EXCHANGE LIMITED
Oil / Gas Drilling |
Boart Longyear Ltd provides contract drilling services to the mining, environmental and infrastructure, and energy industries, and manufactures drilling, coring, grinding tools and equipment, and wear components.
From fundamental viewpoint, the company shows positive indicators with a PER of 6.56x for this year. In addition, with an "enterprise value to sales" ratio of 0.73x, the company is weak valued. The turnover's growth rate and the important operating margin add relevance to the choice of this stock.
Technically, the mid-term trend is neutral within a horizontal trading range AUD 2.92 / 3.23. After the recent downward trend the Boart Longyear Ltd.'s share comes in contact with important levels (short and mid-term). These supports could stop the bearish trend.
Investors could take long position at current price in order to aim towards AUD 3.23, as first target and then 3.84 AUD. A stop loss will be placed at AUD 2.85.
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Valuation |
2013e |
2014e |
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PER (Price / EPS)
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7,27x |
4,28x |
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Capitalization / Revenue
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0,20x |
0,19x |
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EV / Revenue
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0,44x |
0,38x |
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EV / EBITDA
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3,12x |
2,52x |
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Yield (DPS / Price)
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4,21% |
5,83% |
| Profitability |
2013e |
2014e |
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Operating Margin (EBIT / Sales)
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5,99% |
7,30% |
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operating laverage (Delta EBIT / Delta Sales)
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-2,26x |
13,0x |
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Net Margin (Net Profit / Revenue)
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2,75% |
4,12% |
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ROA (Net Profit / Asset)
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3,73% |
4,98% |
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ROE (Net Profit / Equities)
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3,74% |
5,43% |
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Rate of Dividend
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30,6% |
25,0% |
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