Latest news with #TPC
The Citizen
16-05-2025
- Business
- The Citizen
Is Cell C using Pick n Pay/Boxer's strategy? Broke mobile network plans to list on JSE
As of February 2025, Blue Label's financial results revealed that Cell C remains technically insolvent, with its liabilities continuing to exceed its assets — a condition that has persisted since shortly after 2019. Blue Label acquired 45% of Cell C in 2017. Pictures: Blue Label and Cell C Facebook pages Blue Label, parent company to Cell C is looking at restructuring the business, which will allow a separation and potential future listing of struggling mobile network, Cell C on the Johannesburg Stock Exchange (JSE). According to reports, Cell C's financial woes began around 2015, when it was unable to make a profit despite reselling airtime. It was during a restructuring process that created three special purpose vehicles to restore Cell C's debt, following Blue Label's acquisition of a 45% stake. Mobile network still technically insolvent The company's financial challenges intensified, and it began a restructuring process that included a recapitalisation in 2022 to reduce debt. In early 2021, Cell C began migrating its customers to roam on partner networks, specifically MTN and Vodacom, and deactivated its physical towers and RAN in June 2023. Blue Label's financial results in February 2025 showed that Cell C is still technically insolvent, meaning its liabilities exceeded its assets, which has been an issue since 2019. The financial results showed that the mobile network had a negative equity of -R3.3 billion. Negative equity means that a company will not be able to settle all of its liabilities with its assets if it is liquidated. Analysts warned Blue Label that acquiring a stake in Cell C is not a very good idea, because the South African telecommunications market is dominated by Vodacom and MTN. Plans to list the mobile network Blue Label's Stock Exchange News Service (SENS), said, 'the proposed restructuring is expected to encompass various ancillary transactions, aimed at optimising Cell C's capital structure and balance sheet in preparation for a potential separation and future listing on the JSE. 'Should Blue Label elect to implement the proposed restructuring, it is envisaged that the various restructuring steps will be inter-conditional and contingent upon the potential listing of Cell C. 'The implementation of the restructuring and potential listing will remain subject to, among other conditions, approval by the boards of Blue Label and Cell C, requisite shareholder and regulatory consents, and favourable market conditions.' How the restructuring will work • 'Airtime asset transfer: The Prepaid Company Proprietary Limited ('TPC'), a wholly owned subsidiary of Blue Label which holds shares and debt claims in Cell C, will transfer Cell C airtime currently held by TPC on its balance sheet to Cell C in exchange for newly issued additional equity in Cell C. • 'Debt-to-equity conversion: TPC's outstanding debt claims against Cell C will be capitalised and converted into equity, further reducing Cell C's leverage. •' Acquisition of Comm Equipment Company Proprietary Limited ('CEC'): Cell C will acquire 100% of CEC (a wholly owned subsidiary of Blue Label) from TPC in exchange for additional Cell C shares. CEC is a subsidiary responsible for Cell C's postpaid offerings. The internalisation will enable Cell C to assume full responsibility over its postpaid customer base, including oversight of supply chain, commercial operations, marketing, billing, credit, and collections. • 'SPV restructure: The Special Purpose Vehicles (SPVs) currently holding equity interests in Cell C will also be restructured as part of the broader initiative, aligning their ownership structures with the redefined capital framework.' ALSO READ: Cell C has suspended 400 workers, but it's not about race, says ICTU How does listing make money? According to the JSE, listing a company primarily benefits the company by enabling it to raise capital through public share offerings. This capital can then be used for various purposes, such as expansion, debt repayment, research and development, or gaining a competitive advantage. 'Well-established companies seeking equity funding to grow their business list on the Main Board. Almost a fifth of the Main Board companies are dual-listed. This means that a company is listed on two or more exchanges. 'If a company has a secondary listing on the JSE, it has its primary listing on another exchange and is regulated by the exchange holding its primary listing. Companies have secondary listings to enable them to raise capital in markets other than the market accessed by their primary listing.' Pick n Pay lists Boxer to make money Pick n Pay Group listed its pride and joy, Boxer, on the JSE with the aim of taking it out of its financial woes. Before the listing, Pick n Pay Group was technically insolvent; the retailer's revenue increased from R109.28 billion to R115.37 billion, while trading expenses rose from R20.15 billion to R22.55 billion. Total liabilities exceeded total assets by R183 million. However, CEO Sean Summers said the retailer has a strategy to turn the ship around, including the listing of Boxer. 'The Boxer IPO remains pivotal to our strategy, and their remarkable performance continues to prove it is an exceptional business. We are excited to see it thrive as a listed entity,' said Summers. Through Boxer's initial public offering (IPO), Pick n Pay was able to raise more than R8.5 billion from the 157.4 million shares allocated to qualifying investors at a share price of R54. Pick n Pay still owes 63% of Boxer. NOW READ: How did Pick n Pay do it? From technically insolvent to growing sales in months
Yahoo
14-05-2025
- Business
- Yahoo
Tutor Perini Corporation (TPC) is Attracting Investor Attention: Here is What You Should Know
Tutor Perini (TPC) is one of the stocks most watched by visitors lately. So, it might be a good idea to review some of the factors that might affect the near-term performance of the stock. Shares of this construction company have returned +67.1% over the past month versus the Zacks S&P 500 composite's +9.9% change. The Zacks Building Products - Heavy Construction industry, to which Tutor Perini belongs, has gained 21% over this period. Now the key question is: Where could the stock be headed in the near term? While media releases or rumors about a substantial change in a company's business prospects usually make its stock 'trending' and lead to an immediate price change, there are always some fundamental facts that eventually dominate the buy-and-hold decision-making. Rather than focusing on anything else, we at Zacks prioritize evaluating the change in a company's earnings projection. This is because we believe the fair value for its stock is determined by the present value of its future stream of earnings. We essentially look at how sell-side analysts covering the stock are revising their earnings estimates to reflect the impact of the latest business trends. And if earnings estimates go up for a company, the fair value for its stock goes up. A higher fair value than the current market price drives investors' interest in buying the stock, leading to its price moving higher. This is why empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock price movements. Tutor Perini is expected to post earnings of $0.29 per share for the current quarter, representing a year-over-year change of +52.6%. Over the last 30 days, the Zacks Consensus Estimate has changed -9.4%. For the current fiscal year, the consensus earnings estimate of $1.84 points to a change of +158.8% from the prior year. Over the last 30 days, this estimate has changed +20.3%. For the next fiscal year, the consensus earnings estimate of $2.87 indicates a change of +56% from what Tutor Perini is expected to report a year ago. Over the past month, the estimate has changed +2.9%. Having a strong externally audited track record, our proprietary stock rating tool, the Zacks Rank, offers a more conclusive picture of a stock's price direction in the near term, since it effectively harnesses the power of earnings estimate revisions. Due to the size of the recent change in the consensus estimate, along with three other factors related to earnings estimates, Tutor Perini is rated Zacks Rank #3 (Hold). The chart below shows the evolution of the company's forward 12-month consensus EPS estimate: Even though a company's earnings growth is arguably the best indicator of its financial health, nothing much happens if it cannot raise its revenues. It's almost impossible for a company to grow its earnings without growing its revenue for long periods. Therefore, knowing a company's potential revenue growth is crucial. For Tutor Perini, the consensus sales estimate for the current quarter of $1.2 billion indicates a year-over-year change of +6.2%. For the current and next fiscal years, $5.08 billion and $5.71 billion estimates indicate +17.3% and +12.6% changes, respectively. Tutor Perini reported revenues of $1.25 billion in the last reported quarter, representing a year-over-year change of +18.8%. EPS of $0.53 for the same period compares with $0.30 a year ago. Compared to the Zacks Consensus Estimate of $1.08 billion, the reported revenues represent a surprise of +15.12%. The EPS surprise was +783.33%. Over the last four quarters, Tutor Perini surpassed consensus EPS estimates two times. The company topped consensus revenue estimates just once over this period. Without considering a stock's valuation, no investment decision can be efficient. In predicting a stock's future price performance, it's crucial to determine whether its current price correctly reflects the intrinsic value of the underlying business and the company's growth prospects. Comparing the current value of a company's valuation multiples, such as its price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF), to its own historical values helps ascertain whether its stock is fairly valued, overvalued, or undervalued, whereas comparing the company relative to its peers on these parameters gives a good sense of how reasonable its stock price is. The Zacks Value Style Score (part of the Zacks Style Scores system), which pays close attention to both traditional and unconventional valuation metrics to grade stocks from A to F (an An is better than a B; a B is better than a C; and so on), is pretty helpful in identifying whether a stock is overvalued, rightly valued, or temporarily undervalued. Tutor Perini is graded B on this front, indicating that it is trading at a discount to its peers. Click here to see the values of some of the valuation metrics that have driven this grade. The facts discussed here and much other information on might help determine whether or not it's worthwhile paying attention to the market buzz about Tutor Perini. However, its Zacks Rank #3 does suggest that it may perform in line with the broader market in the near term. Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Tutor Perini Corporation (TPC) : Free Stock Analysis Report This article originally published on Zacks Investment Research ( Zacks Investment Research 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
14-05-2025
- Business
- Yahoo
3 Overvalued Stocks in Hot Water
Great things are happening to the stocks in this article. They're all outperforming the market over the last month because of positive catalysts such as a new product line, constructive news flow, or even a loyal Reddit fanbase. While momentum can be a leading indicator, it has burned many investors as it doesn't always correlate with long-term success. All that said, here are three stocks getting more buzz than they deserve and some you should buy instead. One-Month Return: +64.8% Known for constructing the Philadelphia Eagles' Stadium, Tutor Perini (NYSE:TPC) is a civil and building construction company offering diversified general contracting and design-build services. Why Are We Hesitant About TPC? Sales were flat over the last five years, indicating it's failed to expand this cycle Gross margin of 6.1% reflects its high production costs Waning returns on capital from an already weak starting point displays the inefficacy of management's past and current investment decisions Tutor Perini's stock price of $35.95 implies a valuation ratio of 17.2x forward P/E. Check out our free in-depth research report to learn more about why TPC doesn't pass our bar. One-Month Return: +21.3% Pioneering the concept of online quoting and manufacturing for custom prototypes and low-volume production parts, Proto Labs (NYSE:PRLB) offers injection molding, 3D printing, and sheet metal fabrication for manufacturers in various industries. Why Do We Pass on PRLB? Flat sales over the last two years suggest it must find different ways to grow during this cycle Costs have risen faster than its revenue over the last five years, causing its operating margin to decline by 7.3 percentage points Earnings per share have dipped by 10.4% annually over the past five years, which is concerning because stock prices follow EPS over the long term At $41.36 per share, Proto Labs trades at 28x forward P/E. Read our free research report to see why you should think twice about including PRLB in your portfolio, it's free. One-Month Return: +35.2% Operating as a crucial link in the technology supply chain since 1992, ScanSource (NASDAQ:SCSC) is a hybrid distributor that connects hardware, software, and cloud services from technology suppliers to resellers and business customers. Why Do We Think SCSC Will Underperform? Sales tumbled by 1.5% annually over the last five years, showing market trends are working against its favor during this cycle Falling earnings per share over the last two years has some investors worried as stock prices ultimately follow EPS over the long term Low returns on capital reflect management's struggle to allocate funds effectively ScanSource is trading at $42.06 per share, or 11.3x forward P/E. Dive into our free research report to see why there are better opportunities than SCSC. Market indices reached historic highs following Donald Trump's presidential victory in November 2024, but the outlook for 2025 is clouded by new trade policies that could impact business confidence and growth. While this has caused many investors to adopt a "fearful" wait-and-see approach, we're leaning into our best ideas that can grow regardless of the political or macroeconomic climate. Take advantage of Mr. Market by checking out our Top 6 Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 176% over the last five years. Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today for free. 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
13-05-2025
- Business
- Yahoo
Democratic state treasurers rip GOP over budget bill — ‘taxing Barbies and G.I. Joes if you can even find them on store shelves'
House Republicans have released new details about the GOP tax plan, fueling debate about spending cuts that could impact Medicaid and other assistance programs. During a call on Monday, Democratic state officials roundly criticized the GOP budget bill, saying cuts to services would leave vulnerable adults and children struggling with unnecessary food insecurity and fewer resources to access medical care. Democratic state financial leaders are pushing back swiftly and loudly on the GOP budget bill as new details have emerged about tax provisions ahead of a Tuesday House committee meeting. The budget bill sets the overall federal spending agenda, including targets and spending cuts that will fund tax reductions. According to think tank Tax Policy Center (TPC), a preliminary analysis found that while all income groups would benefit from the tax proposal, more than two thirds of the tax cuts included would go to households earning $217,000 or more. The top 1%, those who make more than $1.1 million, would see one quarter of the tax cuts, TPC reported. Overall, the bill would cut taxes by some $5 trillion over the next 10 years, TPC found. One of the key issues will be the impact on Medicaid, which could see $880 billion in cuts. Some Democrats have suggested health care related reductions would cut spending by $715 billion. On Monday's call, which included democratic treasurers from Massachusetts, Washington state, Illinois, and a controller from Houston, finance officials ripped into the budget bill. 'Republicans are pushing this Reagan-era thinking that if we just free up capital for the wealthiest Americans, that it will be reinvested and somehow stimulate domestic economies, expand employment, and share the wealth for all,' said Washington State Treasurer Mike Pellicciotti. That view is 'dated,' he said. Furthermore, immense volatility in American trade policy has pushed investors and businesses to rethink their capital strategies in the U.S., Pellicciotti said. Investors are now looking abroad for investment opportunities out of fear they can't rely on solid economic policy in the U.S. 'The rules-based order that has dominated for nearly a century is undergoing an immense stress test, and those with the wealth and capital to insulate themselves and adapt to this new reality are going to do so,' Pellicciotti said. Illinois Treasurer Michael Frerichs said House Republicans are executing the play President Trump called for by reducing health care spending to fund tax cuts for wealthy Americans. The impact, said Frerichs, will be that millions of Americans lose access to health care, including hundreds of thousands in Illinois. 'States don't have an extra $715 billion in revenue,' said Frerichs. 'What Trump Republicans are proposing is a budget that takes the taxes you pay the federal government and drastically cuts the programs that keep hearts ticking and cancer at bay to afford tax cuts for the rich.' He complained that costs for groceries, clothing and electronics are rising as a result of Trump's 'chaotic, incoherent tariff war,' while the overall agenda will lead to 'taxing Barbies and G.I. Joes, if you can even find them on store shelves.' The White House did not immediately respond to a request for comment. Republican Rep. Brett Guthrie wrote a Wall Street Journal op-ed that Democrats would use the tax plan as 'an opportunity to engage in fear-mongering' and would miscast the bill as an 'attack on Medicaid.' 'In reality, it preserves and strengthens Medicaid for children, mothers, people with disabilities and the elderly—for whom the program was designed.' Pellicciotti, during Monday's call, said the combination of cuts to health care services and infrastructure, coupled with tax changes and trade policy, would to tectonic shifts that will erode the economic environment. 'Given additional capital via tax breaks, we would expect that wealthy investors will continue to move their money overseas,' said Pellicciotti. 'The finance industry and private equity firms are going to do what earns their clients the greatest profit.' This story was originally featured on
Forbes
12-05-2025
- Business
- Forbes
If Congress Expands The Child Tax Credit, Who Benefits At What Cost?
Learning, bicycle and proud dad teaching his young son to ride while wearing a helmet for safety in ... More their family home backyard. Active father helping and supporting his child while cycling outside The Child Tax Credit (CTC) delivers substantial benefits to families with children—but the credit's design means that 17 million children (about 1 in 4) live in families who miss out on the full CTC benefit because the parents—most of whom work—do not earn enough. At the end of this year, along with a host of other Tax Cuts and Jobs Act of 2017 (TCJA) individual income tax changes scheduled to expire, the maximum credit will fall from $2,000 per child to $1,000 per child under age 17. Congress could extend the $2,000 benefit and other aspects of the current CTC — and still deliver more benefits to very low-income working families than scheduled under current law. Indeed, several members of Congress have proposed alternative CTC designs to better assist families with multiple children and families with young children. The credit could also address rising costs and other issues facing working families while investing in our nation's future. In a new TPC analysis, we show who would benefit from various plans, and how much they would cost. We show that phasing in the CTC more quickly delivers benefits mostly to families with low incomes at relatively modest cost; resources can be targeted to parents of newborns with very low incomes at modest cost; and broad expansions of the credit amount are relatively costly and deliver the majority of benefits to middle- and high-income families. More details of each of these follow; additional reform options appear in our paper. Phasing in the CTC with earnings faster: Phasing in the refundable portion of the CTC starting with the first dollar of earnings, at a rate of 15 percent per child (up to 45 percent for families with three of more children), and allowing the full $2,000 to be received as a refundable credit would cost about $48.5 billion over the 10-year budget window from FY2025 to FY2034. Benefits from this change would largely be concentrated in the lowest fifth of the income distribution (Figure 1). Distribution of Benefits by Income Quintile for Families with Children Making the CTC fully refundable for families with a newborn: This would allow families to benefit from the full $2,000 credit for their newborn, even if they did not have earnings. It would cost about $7.5 billion over the 10-year budget window. That is substantially less than other proposals we evaluated since there are relatively few families with newborns and most of them already receive the full $2,000 credit. Low-income families are currently the least likely to receive the full credit; as a result low-income families with a newborn would get an estimated 86 percent of the benefits from this proposal. Extending CTC eligibility to 17-year-old children and increasing the credit to $2.500 per child under age 17: Families with incomes in the middle three income quintiles would get most of the benefits from increasing the maximum eligible age for the CTC by one year to 17 (at an estimated cost of about $57.5 billion over the 10-year budget window) and increasing the credit amount to $2,500 per child (at an estimated cost of about $229.5 billion over ten years). That's because benefits to families with 17-year-old children essentially replicate benefits of the Child Tax Credit as it is today. Making the credit larger without adjusting how the credit phases in still leaves lower-income families bumping up against phase-in rules that limit their CTCs. Research shows that delivering benefits to families with children is a sound investment, with particularly large payoffs among families with low incomes. Additional CTC options, their costs, and how much each would benefit families with children is available here. Policymakers can select which one fits their policy goals and budget constraints.
