The Australian sharemarket, represented by the ASX 200, experienced a decline of 0.6% at midday following the latest UK consumer price index report and US retail sales numbers. The S&P/ASX 200 index fell to 7352.5, with materials, energy, and real estate stocks leading the losses. Real estate stocks, sensitive to interest rates, were among the worst performers, with the sector down 1.5%. Ampol shares fell 2.7% despite the company's announcement that its full-year unaudited replacement cost operating profit (RCOP) would be slightly ahead of its record in 2022. APM Human Services tumbled 36.6% after issuing a first-half profit warning aftermarket. Liontown Resources plunged 11.8% following the sale of Albemarle's 4% stake in the lithium play after market close on Wednesday [db86aa21].
Shares of Shine Justice (SHJ.AX) fell as much as 10.1% to A$0.710, marking its worst day since Oct. 27. The legal service provider reported a HY profit of A$178,000 ($116,803.60), compared to A$10.6 million the previous year. Shine Justice no longer expects its FY24 adjusted EBITDA to exceed FY23 levels. The stock has risen more than 14% this year [334407e3].
Jutal Offshore Oil Services Limited's (HKG:3303) share price has gained 37% in the last month and 59% over the past year. Despite the increase, the company's price-to-sales (P/S) ratio of 0.5x is still considered average compared to the Energy Services industry in Hong Kong. The company's revenue has been rising, but its three-year revenue has decreased by 29%. The industry is predicted to deliver 15% growth in the next 12 months, indicating a downward momentum for Jutal Offshore Oil Services. The current P/S ratio is concerning, as it may not be sustainable given the company's negative revenue growth rates. Investors should be cautious and consider the company's shrinking revenues before making investment decisions [191d258a].
Shaver Shop Group (ASX:SSG) is showing promising signs for the future. The company has a return on capital employed (ROCE) of 23%, which is higher than the industry average of 18%. Over the past five years, the returns on capital employed have grown considerably, and the amount of capital employed has increased by 33%. This indicates that the company has profitable initiatives that it can continue to reinvest in, suggesting a bright future for Shaver Shop Group [d7b1b8ff].
Investors in Capral (ASX:CAA) have seen strong returns of 266% over the past five years. The share price of Capral has soared 162% in the last half-decade. The earnings per share (EPS) of Capral grew at 35% a year, outpacing the share price gain of 21% over the same period. Capral has rewarded shareholders with a total shareholder return (TSR) of 266% over the last 5 years, which is better than the share price return. The TSR includes the value of dividends and the benefit of any discounted capital raising or spin-off. Capral has provided a total shareholder return of 42% in the last twelve months, indicating positive sentiment around the company. However, there are 2 warning signs for Capral that investors should be aware of [27d3b4fb].
Analysts are bullish on two ASX dividend stocks for June. The first is Cedar Woods Properties Limited (ASX: CWP), which is currently on Morgans' best ideas list with an add rating and a $5.60 price target. The broker expects dividends per share of 18 cents in FY 2024 and 20 cents in FY 2025, resulting in yields of 4% and 4.5% respectively. The second stock is Challenger Ltd (ASX: CGF), which Goldman Sachs analysts believe is a buy. The broker has a $7.50 price target and forecasts fully franked dividends of 26 cents per share in FY 2024, 27 cents per share in FY 2025, and 28 cents per share in FY 2026, resulting in yields of 3.9%, 4.1%, and 4.2% respectively [fd8af992].
Somero Enterprises, a FTSE dividend share, is recommended for purchase in June due to its 6.7% dividend yield. The company designs and manufactures laser-guided concrete laying screed machines. It generates around three-quarters of its sales from North America, with the rest coming from Europe, Australia, and Asia. The author of the article highlights the potential for growth in the US infrastructure sector, which could benefit Somero. However, they also note that the construction industry is cyclical and that project delays due to high debt costs have affected Somero's cash flow and dividend payouts in the past. Despite this, the author believes that the stock has performed well over the last 10 years, with an average annual return of 11.6% and a 6% annual dividend yield. They consider the current share price to be undervalued and a possible buying opportunity, especially with the expectation of interest rate cuts later in the year. The author also mentions that management is executing a $2 million share buyback program. They conclude by stating that if construction projects resume and go according to plan, Somero could continue creating value for shareholders [774197e7].
Distribution group Diploma (LSE: DPLM) is an under-the-radar FTSE 100 stock that has consistently hiked its dividends by an average rate of 13.7% per year for the past decade. The stock has seen impressive share price growth, jumping 33.36% over the last year and 166.54% over the past five years. Diploma sells industrial products and has made six new acquisitions in the past year. The CEO is optimistic about the company's future, forecasting constant currency revenue growth of around 16% and operating margins rising to around 20.5%. The stock is currently trading at 36.36 times earnings and offers a dividend yield of 1.36%. The author of the article regrets not investing in Diploma earlier and would buy the stock if they had the cash [220580c8].
Doman Building Materials Group Ltd. has announced a dividend for the 57th consecutive quarter. The dividend of $0.14 per share will be paid on July 12, 2024, to shareholders of record on June 28, 2024. Doman Building Materials Group Ltd. is a fully integrated national distributor in the building materials and related products sector, with operations in Canada and the United States. The company operates multiple treating plants, planing and specialty facilities, and distribution centers across the country [aff7d238].
Johns Lyng Group Limited (JLGRF) offers integrated building services in Australia, New Zealand, and the USA. The group provides comprehensive solutions in Insurance & Restoration, Commercial Services, Strata Building & Management, and Disaster Recovery & Management. The company's nascent coverage shows sustained earnings growth and strong reinvestment, indicating undervaluation. In the first half of fiscal 2024, the company experienced strong earnings growth, leading to an upgrade in group revenue by 3.5% and group EBITDA by 5%. The company's trailing GAAP earnings ratio is 34.37, resulting in a GAAP earnings yield of 2.91%. The company has generated $62 million of operating cash flow over the past 12 months, with the majority going into acquisitions. The company's cost of equity is 5.85%, resulting in an expected intrinsic value of $15.48 per share. The company's strong half-year fiscal 2024 results and acquisitions funded by internal cash flow make it a 'Buy' at present. [ea9710c7]
Tilly's, Inc. (TLYS) reported negative revenue comparables and operating losses in 1Q24. The company's valuation remains uncertain due to ongoing losses and cash reserve consumption. The stock may be attractive for aggressive investors speculating on a turnaround, but caution is advised. The company's CEO was replaced by the founder and Chairman in January. The company made operational changes and reduced promotions. However, it is too early to judge the effectiveness of these initiatives. Tilly's stock has fallen more than 30% since the last article. The valuation would be attractive if the company can return to pre-pandemic profitability levels, but there is no evidence to support that belief. The company has been operating at a loss for over a year and has consumed more than half of its cash reserves. It is difficult to value a business that cannot generate operating cash flows. Shorting the stock is not recommended due to the potential for a turnaround. The article was written by Quipus Capital. [d552e116]