Morgan Stanley Keeps Their Buy Rating on Tuas Ltd. (TUA)
Elevate Your Investing Strategy:
Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
According to TipRanks, Bales is a 2-star analyst with an average return of 0.4% and a 40.96% success rate. Bales covers the Consumer Cyclical sector, focusing on stocks such as Collins Foods , Corporate Travel Management Limited, and Temple & Webster Group Ltd.
In addition to Morgan Stanley, Tuas Ltd. also received a Buy from Citi's William Park CPA in a report issued on July 29. However, on July 28, TR | OpenAI – 4o initiated coverage with a Hold rating on Tuas Ltd. (ASX: TUA).
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
4 minutes ago
- Yahoo
Estimating The Intrinsic Value Of Megaport Limited (ASX:MP1)
Key Insights The projected fair value for Megaport is AU$15.13 based on 2 Stage Free Cash Flow to Equity With AU$15.03 share price, Megaport appears to be trading close to its estimated fair value Our fair value estimate is 22% higher than Megaport's analyst price target of AU$12.45 Does the August share price for Megaport Limited (ASX:MP1) reflect what it's really worth? Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. We will use the Discounted Cash Flow (DCF) model on this occasion. There's really not all that much to it, even though it might appear quite complex. Companies can be valued in a lot of ways, so we would point out that a DCF is not perfect for every situation. If you want to learn more about discounted cash flow, the rationale behind this calculation can be read in detail in the Simply Wall St analysis model. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. Is Megaport Fairly Valued? We're using the 2-stage growth model, which simply means we take in account two stages of company's growth. In the initial period the company may have a higher growth rate and the second stage is usually assumed to have a stable growth rate. To start off with, we need to estimate the next ten years of cash flows. Where possible we use analyst estimates, but when these aren't available we extrapolate the previous free cash flow (FCF) from the last estimate or reported value. We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. We do this to reflect that growth tends to slow more in the early years than it does in later years. Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 2026 2027 2028 2029 2030 2031 2032 2033 2034 2035 Levered FCF (A$, Millions) AU$41.5m AU$52.2m AU$92.0m AU$103.0m AU$124.0m AU$139.9m AU$153.7m AU$165.6m AU$176.1m AU$185.5m Growth Rate Estimate Source Analyst x8 Analyst x7 Analyst x2 Analyst x1 Analyst x1 Est @ 12.81% Est @ 9.85% Est @ 7.78% Est @ 6.33% Est @ 5.32% Present Value (A$, Millions) Discounted @ 8.1% AU$38.3 AU$44.7 AU$72.8 AU$75.3 AU$83.9 AU$87.5 AU$88.9 AU$88.6 AU$87.1 AU$84.8 ("Est" = FCF growth rate estimated by Simply Wall St)Present Value of 10-year Cash Flow (PVCF) = AU$752m We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. For a number of reasons a very conservative growth rate is used that cannot exceed that of a country's GDP growth. In this case we have used the 5-year average of the 10-year government bond yield (2.9%) to estimate future growth. In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 8.1%. Terminal Value (TV)= FCF2035 × (1 + g) ÷ (r – g) = AU$185m× (1 + 2.9%) ÷ (8.1%– 2.9%) = AU$3.7b Present Value of Terminal Value (PVTV)= TV / (1 + r)10= AU$3.7b÷ ( 1 + 8.1%)10= AU$1.7b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is AU$2.4b. To get the intrinsic value per share, we divide this by the total number of shares outstanding. Compared to the current share price of AU$15.0, the company appears about fair value at a 0.7% discount to where the stock price trades currently. Valuations are imprecise instruments though, rather like a telescope - move a few degrees and end up in a different galaxy. Do keep this in mind. The Assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows. You don't have to agree with these inputs, I recommend redoing the calculations yourself and playing with them. The DCF also does not consider the possible cyclicality of an industry, or a company's future capital requirements, so it does not give a full picture of a company's potential performance. Given that we are looking at Megaport as potential shareholders, the cost of equity is used as the discount rate, rather than the cost of capital (or weighted average cost of capital, WACC) which accounts for debt. In this calculation we've used 8.1%, which is based on a levered beta of 1.198. Beta is a measure of a stock's volatility, compared to the market as a whole. We get our beta from the industry average beta of globally comparable companies, with an imposed limit between 0.8 and 2.0, which is a reasonable range for a stable business. See our latest analysis for Megaport SWOT Analysis for Megaport Strength Debt is not viewed as a risk. Weakness Earnings declined over the past year. Opportunity Annual earnings are forecast to grow faster than the Australian market. Current share price is below our estimate of fair value. Threat Revenue is forecast to grow slower than 20% per year. Looking Ahead: Although the valuation of a company is important, it is only one of many factors that you need to assess for a company. The DCF model is not a perfect stock valuation tool. Rather it should be seen as a guide to "what assumptions need to be true for this stock to be under/overvalued?" For example, changes in the company's cost of equity or the risk free rate can significantly impact the valuation. For Megaport, we've put together three further factors you should further research: Risks: For instance, we've identified 1 warning sign for Megaport that you should be aware of. Future Earnings: How does MP1's growth rate compare to its peers and the wider market? Dig deeper into the analyst consensus number for the upcoming years by interacting with our free analyst growth expectation chart. Other High Quality Alternatives: Do you like a good all-rounder? Explore our interactive list of high quality stocks to get an idea of what else is out there you may be missing! PS. The Simply Wall St app conducts a discounted cash flow valuation for every stock on the ASX every day. If you want to find the calculation for other stocks just search here. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.
Yahoo
34 minutes ago
- Yahoo
Pleasing Signs As A Number Of Insiders Buy Clara Resources Australia Stock
Usually, when one insider buys stock, it might not be a monumental event. But when multiple insiders are buying like they did in the case of Clara Resources Australia Ltd (ASX:C7A), that sends out a positive message to the company's shareholders. While insider transactions are not the most important thing when it comes to long-term investing, we would consider it foolish to ignore insider transactions altogether. AI is about to change healthcare. These 20 stocks are working on everything from early diagnostics to drug discovery. The best part - they are all under $10bn in marketcap - there is still time to get in early. The Last 12 Months Of Insider Transactions At Clara Resources Australia In the last twelve months, the biggest single purchase by an insider was when insider Fred Bart bought AU$175k worth of shares at a price of AU$0.014 per share. So it's clear an insider wanted to buy, even at a higher price than the current share price (being AU$0.004). While their view may have changed since the purchase was made, this does at least suggest they have had confidence in the company's future. We always take careful note of the price insiders pay when purchasing shares. As a general rule, we feel more positive about a stock if insiders have bought shares at above current prices, because that suggests they viewed the stock as good value, even at a higher price. Clara Resources Australia insiders may have bought shares in the last year, but they didn't sell any. They paid about AU$0.0091 on average. I'd consider this a positive as it suggests insiders see value at around the current price. You can see the insider transactions (by companies and individuals) over the last year depicted in the chart below. By clicking on the graph below, you can see the precise details of each insider transaction! View our latest analysis for Clara Resources Australia Clara Resources Australia is not the only stock insiders are buying. So take a peek at this free list of under-the-radar companies with insider buying. Does Clara Resources Australia Boast High Insider Ownership? Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. Usually, the higher the insider ownership, the more likely it is that insiders will be incentivised to build the company for the long term. Insiders own 27% of Clara Resources Australia shares, worth about AU$624k. While this is a strong but not outstanding level of insider ownership, it's enough to indicate some alignment between management and smaller shareholders. What Might The Insider Transactions At Clara Resources Australia Tell Us? It doesn't really mean much that no insider has traded Clara Resources Australia shares in the last quarter. However, our analysis of transactions over the last year is heartening. Insiders do have a stake in Clara Resources Australia and their transactions don't cause us concern. In addition to knowing about insider transactions going on, it's beneficial to identify the risks facing Clara Resources Australia. In terms of investment risks, we've identified 5 warning signs with Clara Resources Australia and understanding these should be part of your investment process. But note: Clara Resources Australia may not be the best stock to buy. So take a peek at this free list of interesting companies with high ROE and low debt. For the purposes of this article, insiders are those individuals who report their transactions to the relevant regulatory body. We currently account for open market transactions and private dispositions of direct interests only, but not derivative transactions or indirect interests. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
an hour ago
- Yahoo
Don't Buy AMCIL Limited (ASX:AMH) For Its Next Dividend Without Doing These Checks
AMCIL Limited (ASX:AMH) is about to trade ex-dividend in the next four days. Typically, the ex-dividend date is two business days before the record date, which is the date on which a company determines the shareholders eligible to receive a dividend. The ex-dividend date is important because any transaction on a stock needs to have been settled before the record date in order to be eligible for a dividend. Thus, you can purchase AMCIL's shares before the 8th of August in order to receive the dividend, which the company will pay on the 27th of August. The company's next dividend payment will be AU$0.055 per share. Last year, in total, the company distributed AU$0.04 to shareholders. Based on the last year's worth of payments, AMCIL has a trailing yield of 3.5% on the current stock price of AU$1.13. Dividends are an important source of income to many shareholders, but the health of the business is crucial to maintaining those dividends. That's why we should always check whether the dividend payments appear sustainable, and if the company is growing. This technology could replace computers: discover the 20 stocks are working to make quantum computing a reality. If a company pays out more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Last year AMCIL paid out 104% of its profits as dividends to shareholders, suggesting the dividend is not well covered by earnings. Generally, the higher a company's payout ratio, the more the dividend is at risk of being reduced. Check out our latest analysis for AMCIL Click here to see how much of its profit AMCIL paid out over the last 12 months. Have Earnings And Dividends Been Growing? Stocks with flat earnings can still be attractive dividend payers, but it is important to be more conservative with your approach and demand a greater margin for safety when it comes to dividend sustainability. If business enters a downturn and the dividend is cut, the company could see its value fall precipitously. With that in mind, we're not enthused to see that AMCIL's earnings per share have remained effectively flat over the past five years. We'd take that over an earnings decline any day, but in the long run, the best dividend stocks all grow their earnings per share. Another key way to measure a company's dividend prospects is by measuring its historical rate of dividend growth. AMCIL's dividend payments are effectively flat on where they were 10 years ago. The Bottom Line Has AMCIL got what it takes to maintain its dividend payments? AMCIL has an uncomfortably high payout ratio, and its earnings have not grown at all. All things considered, we're not optimistic about its dividend prospects, and would be inclined to leave it on the shelf for now. With that being said, if you're still considering AMCIL as an investment, you'll find it beneficial to know what risks this stock is facing. For example - AMCIL has 1 warning sign we think you should be aware of. If you're in the market for strong dividend payers, we recommend checking our selection of top dividend stocks. Have feedback on this article? Concerned about the content? Get in touch with us directly. Alternatively, email editorial-team (at) article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned. Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
