Just bought approximately a 10% weight in Stagecoach.
I think they are very good value at this price. To break down the business they are a bus and train operator.
Income statement here:
So 73% profit Regional + London bus 21% rail 9.7% North America – less group costs / a few other bits.
Shares have fallen from a high of 420 in mid 2015 to 260 now – a near 40% fall. They have been particularly punished due to their December trading statement which stated:
“We believe that revenue has been adversely affected by the terrorist attacks in Paris discouraging people from travelling to major cities. We currently anticipate a recovery in those revenue growth rates.“
I guess its possible some people will travel less due to the attacks – but like the post September 11th dip in travel – it will be temporary.
Continue reading “Stagecoach Group – under-valued with a few moats”