In this series of posts I am going to be looking at stocks listed on the NZX in relation to their returns to shareholders over the life of their listing -what shareholders would now see in their back pockets if they had invested in the company IPO.
The calculation of returns includes dividends and tax credits.
Ryman Healthcare Ltd [RYM.NZ] has been exceptional to its shareholders in terms of returns since its IPO in July at $1.00 and its subsequent listing on 29 July of that year and even better for its owners who founded the company in 1984. 71.9c in net dividends - there are no tax credits - (see chart above) and a 5:1 share split in January 2007 gives RYM a slightly more than 680% return (see chart below for the share price percentage gain against the average of all NZX indexes) over the nearly 11 year listing, an approximate annual net return just over 60%.
This is approximately a 600% better return when compared to the average of all NZX indexes.
Disclosure : I own RYM shares in the Share Investor Portfolio
Long Term View Series
Auckland International Airport
Air New Zealand
Briscoe Group Ltd
Contact Energy Ltd
Delegats Group Ltd
EBOS Group Ltd
Fletcher Building Ltd
Fisher & Paykel Appliances
Fisher & Paykel Healthcare
Goodman Fielder Ltd
Hellaby Holdings Ltd
New Zealand Refining Ltd
Port Of Tauranga Ltd
Pumpkin Patch Ltd
Restaurant Brands Ltd
Ryman Healthcare Ltd
Sky City Entertainment Group Ltd
Sky Network Television Ltd
Telecom NZ Ltd
Telstra Corp Ltd
The Warehouse Group Ltd
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c Share Investor 2010
Thursday, April 29, 2010
Wednesday, April 28, 2010
The 2010 full year profit for Fisher & Paykel Healthcare [FPH.NZ] out late May (provisionally 26 May) is a hard one to calculate but it probably wont be a vast improvement on the 2009 FY result.
Indications are that last years $NZ62 million profit is going to be flatish to slightly up on a good revenue rise spurred on by additional innovations in sleep apnea products and the continuation of purchasing of health related products by US health providers.
This figure will vary depending on how much forward foreign exchange cover the company realises as every cent in movement up in the Kiwi/US dollar cross means $2 million less on the bottom line.
From the 2010 Interim Profit Report from last year (see excerpt below) you can see that FPH's profit calculations were based on an average of 64c to the US dollar and over the last 6 months that average would be closer to 70-72c. The forward exchange cover makes the profit calculation hard to calculate.
"Currency exchange rates continued to be very volatile. During the six months, the NZD:USD spot exchange rate ranged from 0.55 to 0.73 with an average spot rate of 0.64. Our hedging policy again served us well. We had in place at 30 September 2009 a mix of foreign exchange contracts and collar options, up to five years forward, with a face value of approximately NZ$600 million. The US dollar and Euro instruments were at weighted average rates of approximately 0.52 US dollars and 0.44 Euros to the New Zealand dollar and are to protect the company from exchange rate volatility." FPH 2010 Interim Report
Having outlined the above though, underlying revenue and profit in US dollars (most FPH business is done in US dollars and translated back to the NZ dollar where their head office is) will be well up and this is the most important indication of company progress.
The exchange rate factor, while important to shareholders in terms of returns in dividends and realised New Zealand dollar profit, should be secondary to real profit in constant US dollar terms.
FPH shares have been steadily rising over the last couple of weeks and closed flat at $3.49 yesterday.
Disclosure I own FPH shares in the Share Investor Portfolio
Fisher & Paykel Healthcare @ Share Investor
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c Share Investor 2010