ENR
Brought some ENR At $28.49 today. here is what I like.
1) ENR Pays about a 4.2% dividend where I brought it so you do get paid while you wait here.
2) ENR Has guided for $3.20-3.30 for this FY last quarter which is the upper range of guidance in the beginning. But I wouldn't be surprised if they actually exceed guidance in fy 24, and grow earning in FY 25 again. As more cost cuts hit the bottom line.
3) ENR the reasons why I like it. Really is it is a growing margin story, a cutting cost story with a program that is expected to save 180-200 million (120 Million so far), hence still alot of savings are gonna hit in fy 25 (Keep in mind this is a september year ender), so the year end comes sooner than you think here. And a significant debt reduction story aided by the cash flow the business spins off, they have reduced debt by 430 Million over the last 8 quarters. So they are serious about reducing debt. To me I see it as a plus when a company is paying off debt at this rate as well.
4) Analyst estimates are for $3.53 in FY 25 I do believe they will earn more like $3.65-3.75 next fy, and maybe like $3.35 this year or so, but who knows with earnings. Historically they could get 11x to 12x earnings at least and many times got 15x guidance. I think the stock could be worth at least high 30's, low 40's conservatively over the next 6-12 months. Time will tell.
Conclusion: I brought ENR because the stock is cheap to it's historical norms, is a major cost cutting story, and increasing margins story, a significant debt reduction story, that is paying you to wait. All is just my opinion, and I could always be wrong though.
AI
