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There are many actions on FTSE 250 with high efficiency and prices. Unfortunately, each of these two factors is the result of the second – as the price raise increases.
Of course, everyone likes high performance, especially if they are on the occasion – but it’s not always a good thing. The price can simply fall until the company goes bankrupt. Looking for low-cost shares with dividend potential, it is very vital to assess the company’s long -term profitability.
Shares on the Multimedia Platform Price Monony group (LSE: Mony) fell by 23% last year. I recently bought some actions when the price dropped to the two -year lowest level a few months ago. However, there was slowly recovery, so it still looks for a good opportunity.
The key factors that drive my decision remain in place, 6.5% of dividend profitability, decent potential for earnings growth and the reimbursement of capital (REE) will be about 40%.
The current price level of around 180p turned out to be an attractive purchase point for investors in 2014 and 2022. However, earlier results do not indicate future results. I also have to assess the company’s market position, demand for its services and managerial results.
Economic challenges
Previously known as moneyuysupermarket.com, the company changed to Mona Group in May last year. Currently, he acts as a specialist in the field of platforms saving money by technology, including several comparative prices.
The company allows consumers to compare prices on a number of products, including energy, car, home and travel insurance, mortgages, credit cards and loans. His subsidiaries include MoneysupermarketIN TravelsupermarketIN IsleollyIN Decision technologyIN QuidcoAND MoneyYSAVEXPERT.
Although it is considered a market leader, it still operates in a highly competitive industry. The raise in many other costumes competing for market share is a continuous risk pressure. Regulatory changes in the financial services sector in Great Britain are another problem that can affect Mona’s activities and profitability.
However, inflation is the most likely culprit of his last losses. Consumer expenses dropped significantly until 2022 and 2023, when the economy suffered a deterioration of the economic situation. Many companies using comparative services have suffered losses, and then the sites themselves.
Long -term potential
Despite the above -mentioned risks, I see a good long -term growth potential in the Mona group.
This year we have already experienced the first reduction of interest rates and more are expected to reduce inflation. The benefits of revitalized economy and increased consumer expenses would be a benefit for the price comparative industry.
If so, Mony is in good condition to enjoy the renovated growth. The price of shares is currently the subject of only 13 times of profits, well below the average market in Great Britain.
When forecasting earnings, it will raise by 8.6% per year, this number may fall even more. It is already 51% below the fair value, based on the expected cash flow, and it is expected that in the next 12 months an average of 42% will raise.
It seems that this is a well -established company operating in a high growth industry and trade below the value due to external factors.
I am as positive as always about his long -term potential and I think that it is worth considering him as part of a portfolio focused on income.