Southern Cross Electrical Engineering Limited

ASX:SXE

Southern Cross Electrical Engineering Limited

ASX:SXE
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$1.540 (+1.3%)
Last close price
#42
Rank
11
Held by
18
Followers
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Reports (4) My Report Forum Investors
Forum Topics SXE SXE Why SXE is special in this environment? ( My opinion)
Valueinvestor0909
Added 5 years ago

The current situation with a Coronavirus outbreak and high market valuation will lead to a challenging time ahead for investors. In such time, I will go for the company, which has no debt, high cash, growing EPS, some tailwind, generating free cash flow, paying a dividend and at reasonable valuation

SXE

  •  market cap $129m , it holds $58m cash ( they will grab a bargain in acquisition during down period) 
  • Management team delivered turn around of the business in the last 5 years from heavily resource sector-focused to infrastructure-focused and well-diversified.
  • Generating profit, Free cash flow, and Growing NPAT
  • Pays roughly ~6% fully franked dividend
  • Already plenty of contracts won for FY21.
  • They advised that they will meet their FY20 guidance.
  • In FY21/FY22, if the government pumps money into an infrastructure project - there will be plenty of contracts to bid with.
  • According to my calculation, it is undervalued currently

It ticks all the boxes for me. I own the shares and it is my opinion 

 

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Bear77
Added 5 years ago

All good points @Bhavesh96el - and I agree - and I hold SXE shares as well - for the same reasons. This is one of those turnarounds that actually has turned around. Another one is BSA. If you put all that in a straw instead of a forum post - it could be a "Bull Case" straw - I will vote it "up". We can't vote on forum posts however - otherwise I would.

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