Super Retail Group have released their results for 2023/24 as follows:

•Group sales up 2 per cent to $3.9 billion

•Group gross margin up 10 bps to 46.3 per cent

•Segment EBIT down 9 per cent to $400 million

•Segment PBT down 12 per cent to $343 million

•Statutory NPAT down 9 per cent to $240 million and normalised NPAT down 11 per cent to $242 million

•Statutory EPS of 106 cents and normalised EPS of 107 cents

•Fully franked final ordinary dividend of 37 cents per share and fully franked special dividend of 50 cents per share

•Expanded store network – opened 28 new stores

•Effective omni retail execution – online sales up 9 per cent to $485 million

•Growing loyalty base – successfully launched rebel Active loyalty program and increased total active club members by 12 per cent to 11.5 million1

•Highly engaged team – engagement score of 812

•Decline in safety performance – TRIFR increased to 14.5 due to higher incidence of manual handing injuries3

•Conservative balance sheet - no drawn bank debt and $218 million cash balance

In regards to a valuation,

This is not a growth stock anymore as although sales are up 2% NPAT is down 9%,

The board have increased the payout with a special dividend of 50 cents per share and I guess that is one way of boosting the SP,

With 225.8 SOI and a Normalised EPS of $1.07,

Assuming a PE of 12 gives a valuation of $2.90 Billion or $12.84 per share

My revised valuation is $12.84 per share,

With the current  SP being around $17.87 SUL is quite overvalued even though SUL is an extremely well-run company, as we go into a period of reduced consumer spending I believe that SUL will come back to around $12.00 in the next 12 – 18 months,

I hold a few SUL in my actual portfolio but not in my Strawman one and will be looking to offload these over the next month or so and then waiting for it to come back to more realistic levels before getting back in.