The extra under the hood bit here is that actually, almost half of the mortgages being done by MAB is now mortgage refinancings. These are not linked to housebuying volumes.
So while the market has lumped this share in with housebuilders, it's revenue profile and dependency on new homes is much less now compared to say 10 years ago.
Possible. But, at the first glance, it doesn’t look probable.
The business looks very capital intensive. They have to reinvest all earnings (plus borrowings) back into their loan book. No cash has been coming out of the business for a long time.
Your First Home scheme may help accelerate growth. But unless return on capital improves, that’s going to suck up more cash.
That’s my first impression.
Is there any important change you found in this company?
Good summary analysis!
The extra under the hood bit here is that actually, almost half of the mortgages being done by MAB is now mortgage refinancings. These are not linked to housebuying volumes.
So while the market has lumped this share in with housebuilders, it's revenue profile and dependency on new homes is much less now compared to say 10 years ago.
$LINV.L
any comment
it can be 10X solid pick before 2030???
Possible. But, at the first glance, it doesn’t look probable.
The business looks very capital intensive. They have to reinvest all earnings (plus borrowings) back into their loan book. No cash has been coming out of the business for a long time.
Your First Home scheme may help accelerate growth. But unless return on capital improves, that’s going to suck up more cash.
That’s my first impression.
Is there any important change you found in this company?
Thanks!