Will you take the Brait?
Unlock the Stock: Afrimat and Spear REIT
Afrimat’s track record is spectacular. Spear REIT is a highly respected property fund. On Unlock the Stock, you can learn about both companies.
RCL is far more than just a chicken business
RCL is far more than just a chicken business these days, which isn’t a bad thing.
Bidvest: strong trading profit growth in every division
Bidvest closed 3.8% higher after releasing results for the six months to December 2021.
Liberty Two Degrees: reversions continue to bite
Liberty Two Degrees holds stakes in some of the most iconic properties in the country
Alviva: 20% revenue growth excl. Tarsus
After teasing the market with a trading statement, Alviva has now released all the details of the interim results for the six months ended December 2021.
PSG Group and the Great Value Unlock
This is one of the biggest news stories on the JSE that we’ve seen in a while
JSE Limited: a cash cow in a shrinking field
You may not be aware of this, but the JSE Limited is listed on the JSE. You’re right in thinking that this sounds like the financial version of the movie Inception
Capital Appreciation on the deal train
The company has announced the acquisitions of three technology companies in South Africa and a 20% stake in a company in the Netherlands.
Woolworths won’t miss 2021
as released results for the 26 weeks to 26 December 2021. The share price rallied 6% despite a fair share of negative commentary on Twitter.
Cashbuild’s negative sales momentum continues
Cashbuild released its interim results for the six months ended 26 December 2021
Comments (6)
Matt
18 Jul 2022Morning
Thanks for the great insight and content.
Question, if EBITDA margin went from 9.3% to 10,3% then how do you arrive EBITDA increase if 44%?
Thanks
Matt
The Finance Ghost
18 Jul 2022Hey Matt – thanks for the question! So the difference here is EBITDA margin vs. EBITDA. If your margin increases (in this case by 100 basis points from 9.3% to 10.3%) and your revenue increases (the amount that the percentage is applied to), then the change in actual EBITDA can be very high. If the margin stays the same, the % change in EBITDA will be equal to the % change in sales. If margins improve, a % change in sales drives an even higher % change in EBITDA. Hope that makes sense?
Jason du Preez
18 Jul 2022I am an virgin active member and hold the stock just because it trades on such a big discount. Also I wanne own what I use. With a gym and food in the stable I am happy to hold and watch it unfold.
paulo
18 Jul 2022Thanks for the great insight.
I am a shareholder in ethos capital, do you think I will benefit from the premier listing when it does come to market?
Mike
19 Jul 2022Hi
Being of simple mind do you like using ebitda when there is high debt levels allowing for better looking results.
How do the actual results fare?
The Finance Ghost
19 Jul 2022Hi Mike – EBITDA gives you a decent view of the underlying operations, though there are many nuances with this. Some are exceptionally technical, like treatment of leases for accounting standards. As a rule of thumb though, so it’s handy way to assess a valuation of the underlying investment. You’re absolutely right about the risk of debt though, which typically sits at holding company level. So the general approach is to value the underlying investments on an EBITDA model and then add them all together. Subtract the debt at the top of the structure and you have some idea of the intrinsic value of the group. There are other technical adjustments as well, but I’m just focusing on the core principle here.