ASX:AMHCapital Markets
AMCIL (ASX:AMH) Shares Trade At A Premium Despite Portfolio Strain
AMCIL entered this result priced for quality, not speed. The stock closed at A$0.92 today and has slipped slightly over the past week, even though the latest year still shows very high net profit margins of 70.6% and earnings growth of 3.6% over the last 12 months.
The catch is valuation. AMCIL now trades on a P/E of 41.8x while its dividend yield sits near 4.35% and is not well covered by earnings or free cash flow. That tension between a premium price tag and stretched dividend cover is the...