catch that cab!

I'm assuming that the recent spate of state government announcements on legitimising the Uber business and, to a lesser extent, the offering of compensation to taxi plate holders (albeit wholly inadequate, in my opinion: watch out for class actions) has removed much of the uncertainty hanging over CAB.

While current trends will damage CAB's revenue streams, make no mistake, this is a very profitable business as seen in the EBIT margin (underlying) of 26.5%. As such it will support a stronger SP. More importantly, the regulations that have been relaxed to allow Uber (and others) to operate will also be advantageous to the regular taxi industry, and therefore CAB.

Debt:Equity has been reduced to 24.9% and the business is experiencing a CAGR slightly above the inflation rate. Not stellar, but acceptable (although, they sneakily hide the past year's decline in a 5 year average). Costs are, worryingly, increasing and although they explain this away with one-off costs, the cost of doing business will have to decrease to compensate for lower fares growth.