reports
- David Talpert
Curro | Cutting capex
Despite reporting a slowdown in recurring HEPS growth to 7% y/y, Curro Holdings (COH) reported strong operational results. Revenue increased by 19% with EBITDA increasing by 21%. Management decided to reduce the capex pipeline and focus on increased capacity utilisation. Thus, we believe the move through the j-curve will accelerate. The business model relies on increasing capacity utilisation; fewer new schools will allow aggregate occupancy levels to increase. We remain positive on COH's p...
- David Talpert
Curro | Relatively defensive
Despite weak economic growth, we expect Curro Holdings (COH) to deliver earnings growth of 22% for H1 '19. The growth is due to increased capacity utilisation and expanding margins as schools mature. In our view, schools are defensive as consumers prioritise private education ahead of discretionary expenditure. However, net student growth at COH has slowed due to financial pressure or emigration. We expect COH to grow earnings at a 25% CAGR over the next four years.
1 director sold
A director at Curro Holdings Limited sold 500,000 shares at 26.062ZAR and the significance rating of the trade was 100/100. Is that information sufficient for you to make an investment decision? This report gives details of those trades and adds context and analysis to them such that you can judge whether these trading decisions are ones worth following. Included in the report is a detailed share price chart which plots discretionary trades by all the company's directors over the last two year...
- David Talpert
Curro | Riding the j-curve
Curro Holdings (COH) reported impressive FY '18 results with HEPS increasing by 23%. EBITDA increased by 33% due to more schools reaching maturity and generating positive cash flows. We expect earnings to grow at a 30% CAGR over the next four years, which will see the PE unwind to 14x. COH's capacity utilisation remains low at 53%. COH declared a maiden dividend, which signals the end of equity raises, in our view. We believe COH's improving cash flow profile over the next three years will suppo...
- David Talpert
Curro | Initiating coverage | Educating the middle class
Curro Holdings (COH) can fill the void of a dysfunctional public education system and provide affordable high-quality education. Schools present a compelling investment case due to their fixed cost nature, a defensive industry and the cash generative nature of mature schools. As more schools operate at increased capacity, we expect Group EBITDA margins to increase. Once COH grows into its potential capacity, the business should generate strong free cash flows and high-quality earnings.
Ford Equity International Rating and Forecast Report
Ford Equity International Research Reports cover 60 countries with over 30,000 stocks traded on international exchanges. A proprietary quantitative system compares each company to its peers on proven measures of business value, growth characteristics, and investor behavior. Ford's three recommendation ratings buy, hold and sell, represent each stock’s return potential relative to its own country market.. The rating reports which are generated each week, include the fundamental details behind...
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