It will be too early too tell in their financials. We might get some commentary around margins and competition but I doubt it. MND or LYL haven't announced any contract wins either so I might be jumping at shadows.
When you look at the ROE for the various players you can see the attraction for MND and LYL.
ROE:
2011 2012 2013 2014 2015 2016
MND 49.2 51.3 50.7 38.2 28.7 18.2
LYL 35.3 37.1 31.9 6.2 -1.5 6.0
GNG 51.7 31.1 18.3 30.4 26.6 37.2
But ROE is a function of industry competitiveness (as well as obvious cyclicality in this industry).
Mr Market doesn't seem to be as worried as I am though. Price / book value for GNG is currently 4.73x on my numbers. While that is ok for a company that can maintain their high ROE it is much higher than it has been historically facing into what is arguably more competition from some very respected players.
Price / Book:
Current 4.73x
2016 2.90x
2015 2.79x
2014 2.25x
2013 1.67x
2012 3.20x
It will be too early too tell in their financials. We might get...
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Last
$2.28 |
Change
-0.030(1.30%) |
Mkt cap ! $293.0M | |||
| Open | High | Low | Value | Volume |
| $2.29 | $2.30 | $2.24 | $216.0K | 95.15K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 4 | 2636 | $2.26 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.28 | 2716 | 2 |
View Market Depth
| Last trade - 15.40pm 29/11/2024 (20 minute delay) ? |
| GNG (ASX) Chart |
