gretel
29 Mar 2017
Tipped on Motley Fool today [link] valueCommunisis (LSE: CMS) has seen its share price continue to gallop higher in recent weeks, the stock rising 23% in value since the turn of the year alone and hitting record tops of 56p earlier in March.The marketing ace pumped to those peaks after announcing that total revenues edged 2% higher during 2016, to £361.9m, with profit before tax jumping 15% to £16.7m.Despite its sustained skywards share price charge, however, Communisis still offers splendid value for money in my opinion.While the business is anticipated to endure a 5% earnings fall in 2017, Communisis is expected to bounce back with a 5% rise in 2018. And these predictions result in P/E ratios of 9.3 times and 8.9 times respectively, scandalously-low valuations in my opinion, given the communications play’s rising success with huge clients across the globe.Big playerCommunisis inked new deals with the likes of HMRC and Sony last year alone, and already counts the likes of Lloyds, Amazon and BP amongst its customer base. The company now sources just over a quarter of all revenues outside the UK, versus 18% just a year ago, and is poised to establish a base in the US this summer to boost trade in the world’s number one economy.And I believe Communisis’s super growth outlook should keep dividends shooting northwards well into the future, helped by its ability to chuck out heaps of cash — free cash flow rose 7% last year to £12.9m.In the meantime, projected payments of 2.6p per share for 2017 and 2.7p for next year should sate the needs of yield-hungry investors. These figures yield 4.8% and 5%, respectively."
gretel
20 Mar 2017
Moving up, new recent highs now Looking good. And still easily on a single-figure P/E, and with high recurring income.
gretel
10 Mar 2017
RNS : Griffiths goes above 21% Griffiths is certainly committing to CMS - he's up to 44.5m shares now. Must have cost him not far off £20m:[link]
gretel
09 Mar 2017
RNS : director buying Decent-sized director buying - a non-exec buys 100,000 shares at 49.9p:[link]
thirty fifty twenty
09 Mar 2017
Analysis of results at 52p With uncertainty in contracts, Brexit impacts, working for the Gvt,and a huge pension liability to me the good thing about the results is that there were no surprises.I didnt pick up anything materially different to my expectations.To me the market has a reasonably accurate pricing of CMS at the moment - yes there are positives and yes the EPS fcst gives a low P/E but there are many uncertainties.- debt is high (ish) not that average debt is £12m higher during the year than year end debt- they have to develop and fund the new multi-year contracts- their business is effectiveness contract based so there is revenue visibility for a few years ahead but little certainty of repeat business- their business has some growth segments but has a lot of paper involved to which is old and structurally reducing- the pension liability is huge relative to the size of the business.* there is much chat on the BB re the impact of the pension. we cannot escape the fact it is a very big liability. it will reduce if interest rates rise. That is not immediately foreseeable in the UK but the relevant fact is that interest rates have very probably stopped falling! Rather than try to repeat the actuary's job I focus on the CASH payments agreed and see if they seem reasonable relative to my analysis of the liability. For CMS the payments are.So despite the above 'negativity' re the market pricing,I am a happy and confident holder.I believe that CMS represents a very good risk reward investment.The mgt team have tackled issues which is all that I expect management to do. Of course it have not been without mistakes but again that to be is realistic.Over time they have ....improved the quality of the business,reduced debt,restructured pension liabilities,and sold more business to clientsand critically gradually increased the margins through scale and digital work.So in 5 years I believe the business will be larger and at higher margin in better sectors,they will have a higher proportion of "sticky" customers which will help pricing,earnings will be much higherthe debt will be net CASHand the pension will look much more manageable relative to the size of the profits.The reputation of the mgt will be enhanced from the long and success track record.The rating will be higher and thus the share price possibly triple or more the current levelsIn the 5 years there might be bumps along the way,and as this 5 year scenario becomes more realistic the price will rise towards it.But for now I think the market is nervous in general and wants a little bit more evidence.I think the price will consolidate close to these levels and in the run up to the next results in 6 mths will regain its momentum etc... and we'll see 70p then if there are no upsets.All IMHO, DYOR + BoLCMS is in my top5 hldgs
gretel
09 Mar 2017
Liberum say Buy with 75p target Bouncing now after initial profit-taking after the recent rise. Liberum have a 75p target and conclude as follows:"Valuation - Trading on 0.4x sales, a P/E of 8x, and a FCF yield of 12% CMS is still lowly valued despite the recent bounce in the shares. This partly reflects the challenging pension backdrop and the mixed track record of acquired businesses. However, there is evidence that the digital operations are better positioned going into FY17 and at a group-wide level the willingness of management to focus on a cost management programme helps add visibility to profit forecasts. We believe future growth in earnings and cash, together with a potential reversal in the longer-term outlook in the pension deficit, can support a re-rating towards our Price Target of 75p (equivalent to an FY16 P/E of 12x)."
gretel
09 Mar 2017
Results ahead of expectations Results are nicely ahead of expectations....- 6.07p EPS compared to forecast 5.8p EPS- £16.7m PBT compared to £16.4m PBT- 2.42p divi slightly ahead of 2.4p forecastDecent FCF and debt reduction too.And a positive outlook:"Trading in the early months of this year has started in line with expectations and the board is looking forward to another positive year for the Group."
gretel
02 Mar 2017
New tip for CMS Tipped here as the cheapest of "10 great growth stocks at reasonable prices":[link]
Xophe13
28 Feb 2017
Results Just looking forward to next Thursdays results announcement. A solid set of results and an expanding order book can only be seen to be positive by the market. The continued expansion into Europe will also help. Other than the pension deficit (which has already been broadcast) I don't see any other nasty surprises.
gretel
20 Feb 2017
Tipped on Motley Fool [link] big yielder I'd buy, and one I'd sell, in MarchThe Motley Fool Feb 19, 2017 Updated: Feb 19th 2017 08:16 AM Shares in Communisis(LSE: CMS) have received a hefty dose of rocket fuel of late, the stock touching 27-month peaks around 50p per share just last week after gaining 38% in value over the past 10 weeks alone.Communisis a month ago announced "trading for the year ended in line with expectations." The company was boosted by a new three-year contract inked with Sony Europe for providing a wide range of communications services.Other notable contract wins include a mammoth deal with HMRC in December, and the City expects the firm's growing international presence and digital delivery expertise to support a stream of fresh contract wins from 2017 onwards.With costs also coming down across the business, Communisis is expected to follow a 13% earnings rise in 2016 with a 6% advance in the current period. And this is predicted to translate into increasingly-tantalising dividends.For 2017 a payout of 2.5p per share is predicted, up from an estimated 2.4p for last year. And this period's projection produces a chunky 5.2% dividend yield, trashing a 3.5% average for Britain's big caps.This year's anticipated payment is also well protected by expected earnings, with coverage of 2.5 times sailing ahead of the safety watermark of 2 times. Furthermore, steadily-improving cash flows should also underpin sterling dividend growth, in my opinion."
gretel
06 Feb 2017
Tipped in the Telegraph I've been buying back in recently given Richard Griffiths' continued buying - he now has almost 21% of CMS.I bought some more first thing today following CMS being tipped by James Bartholomew in his column in Saturday's Daily Telegraph as follows:"As for new share purchases, I have been adding to an old holding in Communisis (LSE: CMS.L - news) , a company that organises mailshots for other firms.It has been through a difficult time but seems to be recovering. It has recently won some good contracts from HM Revenue & Customs and Sony (Hanover: SON1.HA - news) .The shares, at 46.5p as I write, stand at just over seven times forecast earnings. It is also encouraging that the three-year downward trend of the share price looks as though it has been reversed.In fact, the chart has made a shape known as a “double bottom”. In this context, a “double bottom” is an excellent thing."
MRBIG
19 Jan 2017
reassuring update, particularly re balance sheet. Plenty upside potential here
ExpatBill
13 Dec 2016
Re: trades?? No idea really but it may be connected with the purchase of more shares by a wealthy private investor Richard Griffiths - he now has just over 18% of the shares. I hope it's the start of a breakout. Can't understand why the share is so undervalued so it's nice to see that a crafty investor like Mr Griffiths sees value and is buying.
Xophe13
08 Dec 2016
trades?? Anyone got an idea why all the trades over past 3 days?
Xophe13
22 Nov 2016
Re: Prospects ? Just been looking at the Investor news on the website. It says they expect to deliver on 2016 expectations.
