looking thought the jardine stable of companies one thing that they all largely have are high ROIC. it is especially so for dairy farm.
Keeping a capital base in line with expansion requires superior operations. and that roic looks to be an indication. in fact dairy farm so far superior that their roic is around 40-50%. In the past year, that has fallen off to 33% and from the first half of 18%, seems to indicate that perhaps for the first time in a long time, they require more capex to get that earnings growth.
the same could probably be which is a sign of the more difficult operating scenario.
if you buy them expecting 20% CAGR, you better make sure they can deliver that. to be more sure, the environment needs to be conducive, the management team needs to have that competitive edge there. else, you may just be overpaying.
any way i did some small exercise here
[Image: D6FyxIf.png]
seem to me for the first years the dividend have been in a funk. even in the later years the dividend growth is 15% at most. does show some signs of deceleration.
Keeping a capital base in line with expansion requires superior operations. and that roic looks to be an indication. in fact dairy farm so far superior that their roic is around 40-50%. In the past year, that has fallen off to 33% and from the first half of 18%, seems to indicate that perhaps for the first time in a long time, they require more capex to get that earnings growth.
the same could probably be which is a sign of the more difficult operating scenario.
if you buy them expecting 20% CAGR, you better make sure they can deliver that. to be more sure, the environment needs to be conducive, the management team needs to have that competitive edge there. else, you may just be overpaying.
any way i did some small exercise here
[Image: D6FyxIf.png]
seem to me for the first years the dividend have been in a funk. even in the later years the dividend growth is 15% at most. does show some signs of deceleration.
Dividend Investing and More @ InvestmentMoats.com