Grossed up fully franked yield at 5.58%, Operating margin >17%, ROE >12%, and Current Ratio >3. This is a good entry point for long-term value investors out there.
Value of live fish is growing at between 10-18% per year for the past 5 financial years, and this is set to increase in order to match strong demand both locally and globally.
Chile's new regulation that comes in from 2018 onward limits the growth in the number of fish in farms at 3%. So supply in the medium term is constrained and will keep salmon HOG prices elevated to become the new normal
Rival Huon Aquaculture trades at a PE of 94 where as Tassal's PE is <12
Medium term price target is at $6.00
Cheers
Ninja Tuna of the Bering Sea
TGR Price at posting:
$3.84 Sentiment: Buy Disclosure: Held
