Q: hi, can I get your short analysis of this company. growth rate? payout ratio? value? is it a buy or sell? long term investor. cheers, chris
5i Research Answer:
DBM is expected to see a decline in earnings this year (91c per share to 57c) and then flat earnings in 2024 (56c). Debt is fairly high at more than 2X cash flow. It has some earnings cyclicality but has been profitable for all of at least the last 20 years, including 2008. 12-month payout ratio is very low at less than 20%. The dividend was last raised in Nov. 2021. There is some size risk here but it is price well at 12X earnings. We would view it as a HOLD, however, and would like to see a better balance sheet and better growth.