Myer Holdings Ltd (ASX: MYR) has reported its half year result to 26 January 2019, is the share price a buy?
Myer Holdings is the name behind the popular department store retailer. Myer is named after Sidney Myer who arrived in Australia from Russia in 1899. Myer is an upmarket department store business. Sidney Myer and his brother Elcon opened the first Myer store in Bendigo in 1900, and opened a second Bendigo store in 1908. In 1911 Sidney Myer bought adjoining properties on Melbourne’s Bourke Street and opened the Myer Emporium. Today, Myer has tens of thousands of shareholders and offers retail products from over 1,000 suppliers through its nationwide ‘big box’ department stores.
Here’s What Myer Holdings Reported
Myer reported that total sales were down 2.8% to $1.67 billion, with comparable store sales down 2.3%. However, online and ‘omnichannel’ sales grew by 18.6% to $151.2 million.
Operating gross profit fell by 0.2% to $643.8 million. However, operating/underlying EBITDA grew by 4.9% to $113.6 million (click here to learn what EBITDA means).
Operating net profit grew 3.1% to $41.3 million and reported net profit went from a loss of $476.2 million last year to a profit of $38.4 million this year.
Myer Dividend and Balance Sheet
Although Myer did generate a net profit, the company decided not to declare a dividend at this stage.
However, operating cash flow increased by $8 million to $173 million and this helped net debt reduce net debt to $57 million.
Myer Management Comments
Myer CEO and Managing Director John King said: “This result demonstrates the positive customer response to a number of initiatives from our Customer First Plan, particularly during the all-important Christ and Myer sale periods.”
Is Myer a buy?
It is far too early for me to consider Myer a turnaround, we at least have to see the full year report.
I like the current plan of focusing on non-customer related costs, profitability and cash management, it seems to be working. I’m also glad to see that Myer is focusing on its online business.
At the pre-open price, Myer is priced at under nine times this half year report’s earnings, so if the next six months are good Myer could be quite cheap today. But it’s not the type of investment that I’d want to make, instead I would rather go for one of the growth shares mentioned in the FREE report below.
After searching through a market with over 2,000 shares, our lead expert investment analyst has narrowed it down to just 2 of his favourite rapid-growth shares in a FREE report to Rask Media readers.
Over the past five years, these two shares have gone from being 'tiny caps' to being serious contenders for the ASX 200.
Idea #1 is taking on the world, starting with the huge USA market. In a just a few short years the company has snatched market share away from rivals and is on its way to being the market leader.
Idea #2 uses a 'printer and cartridge' type model to get large and established customers: a) using their healthcare industry-leading product, b) paying for it again and again and again... so it's little wonder this company is tipped to grow at a rapid pace in 2019.
Access the free report by clicking here now. Absolutely no credit card or payment details required.
Disclaimer: Any information contained in this article is limited to general financial/investment advice only. The information has not taken into account your specific needs, goals or objectives, so please consider consulting a licenced and trusted adviser before acting on the information. Please read The Rask Group’s Financial Services Guide (FSG) for more information. This article is authorised by Owen Raszkiewicz of The Rask Group, which is a corporate authorised representative No. 1264179 of Strawman Pty Ltd (ACN: 610 908 211) (AFSL: 501 223).