Moving the needle
Some companies in the vehicle and transport sectors have been more resilient than others in the face of depressed consumer spending
BUY: Combined Motor HoldingsShare price: R20JSE code: CMH Among its more illustrious peers, Durban-based investment holding company Combined Motor Holdings (CMH) flies under the radar. Founded by Jebb McIntosh and Maldwyn Zimmerman in 1976, the group, which started out as a Chevrolet and Datsun franchise motor dealership in KwaZulu-Natal, has in many respects defied its humble beginnings. There is a strong case why CMH is a worthy BUY, notwithstanding the headwinds retailers face due to depressed consumer confidence. In the past four years, CMH — a R10.6bn company — has steadily increased its NAV per share, headline earnings and dividends per share. Dividends per share have more than doubled from 78c a share in 2014 to 161c, while headline EPS (HEPS) have soared from 156.7c a share to 332.9c. In the year ended February 2018, CMH increased dividends by 15%. HEPS were up by 17.1%. So what makes CMH so resilient? Its sensible business model. CMH is vertically integrated, with a presenc...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.