Eppley’s stock scarce & undervalued

Eppley’s profit after tax increased 5 percent for the first nine months of the year to $41.7 million compared to $39.7 million in 2014. For the September quarter, profit jumped sharply by 91 percent to $19.3 million versus $10 million in 2014.
Earnings per share of $52.47 was achieved for the nine months and $24.17 for the quarter. A dividend of $9 per share will be paid on November 30 to ordinary shareholders on record at November 20.
Revenues grew 93 percent for the quarter to $63 million and 60 percent for the nine months period, to $171 million. Net interest income increased from 39.56 percent in the nine months to 43.9 percent in the quarter. Operating expenses climbed 16 percent for the quarter and 15 percent for the nine months.
As of September, Eppley had a $1.38 billion portfolio consisting mainly of loans, leases and receivables. The average income yield of the portfolio was 14 percent, the company stated.
Equity capital at the end of the quarter stood at $341 million and borrowing at $1 billion with average cost of debt being 10 percent. We ended the quarter with $237 million of cash and short-term investments, the company also stated.
Eppley provides loan and insurance premium financing. At the end of the quarter, the stock that is listed on the junior market of the Jamaica Stock Exchange last traded at $380 much lower than the net asset value was $429 per share.