Fund Manager Summary
The fund managers believe that the outlook for Boom Logistics Limited presents a significant opportunity despite its historical challenges. In their opinion, the company has demonstrated strong operational capabilities, highlighted by its ability to pay down over $100 million in debt over the past eight years, even with negative earnings. They point out that Boom generates excellent free cash flows, which have been obscured by high initial equipment costs and complex depreciation accounting. The recent shift towards leasing equipment is seen as a positive step, potentially enhancing profitability. They argue that the company is currently undervalued, estimating a fair value of 27c per share based on a sum-of-the-parts assessment and 25c on discounted cash flows. The fund managers are actively engaging with management to ensure that this value is recognized in the share price soon.
Source: Trading View
Commentary From The Managers
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Collins St Asset Management
9 Sept 2025
$1.32
Summary
- Boom Logistics reported revenue growth of 2% to $264 million.
- Underlying NPAT stood at $9.3 million.
- EPS increased by 38% to 22 cents.
- Strengths include strong profit growth and exposure to renewable and infrastructure spending.
- A small dividend has been reinstated.
- A $4 million buyback represents approximately 7.3% of shares.
- Management is expected to complete the buyback in full.
- Despite modest revenue growth, seven profit upgrades have been delivered in a row.
- The company remains reasonably priced.
- Collins St Asset Management continues to hold due to these factors.
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Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
Commentary From The Managers
Collins St Asset Management
9 Sept 2025
$1.32
- Boom Logistics reported revenue growth of 2% to $264 million.
- Underlying NPAT stood at $9.3 million.
- EPS increased by 38% to 22 cents.
- Strengths include strong profit growth and exposure to renewable and infrastructure spending.
- A small dividend has been reinstated.
- A $4 million buyback represents approximately 7.3% of shares.
- Management is expected to complete the buyback in full.
- Despite modest revenue growth, seven profit upgrades have been delivered in a row.
- The company remains reasonably priced.
- Collins St Asset Management continues to hold due to these factors.
Summary
Collins St Asset Management
30 June 2025
$1.36
- Boom Logistics Limited (ASX:BOL) is a leading provider of complex lifting, moving, and project logistics solutions in Australia.
- Despite five recent upgrades to earnings, the company has struggled to gain traction in the investment community.
- Ongoing share buybacks and a reduction in competition due to a major competitor's exit have not yet improved the share price.
- Management has implemented strategies to simplify and enhance market perception of Boom Logistics.
- The company is engaged in selling under-utilised equipment to boost financial performance.
- As of 30 June, Boom traded at $1.36, with a price-to-earnings ratio of 8x and net tangible assets of $2.83.
- Collins St Asset Management expects continued consolidation in the industry, positioning Boom to benefit.
- The potential reintroduction of a consistent dividend may positively influence investor sentiment and share price.
- Based on earnings, Collins St believes BOL should trade at a blended valuation of 12x earnings and net tangible assets.
- This leads to a valuation expectation of approximately $2.50, representing an 80% premium to its share price as of 30 June.
Summary
Collins St Asset Management
31 Dec 2024
$1.40
- Boom Logistics is actively working to close the gap between its share price and its NTA.
- Actions taken include a buy back of shares and a refresher of its assets.
- Despite these efforts, there has been no material improvement in the share price yet.
- The company has reported three consecutive earnings upgrades.
- Collins St Asset Management believes there are more earnings upgrades to come.
- Collins St Asset Management continues to hold because of the potential for future share price appreciation.
Summary
Collins St Asset Management
31 Mar 2024
$1.40
- Collins St Asset Management continues to hold shares in Boom Logistics (ASX:BOL) due to strong alignment between management and shareholders.
- The Board of Boom collectively owns over 15% of the company, reflecting their commitment.
- They have adopted a blend of capital allocation focused on enhancing fleet capabilities and overall competitiveness.
- Management is prioritizing capital expenditure (capex) aimed at acquiring better equipment.
- Any excess capital is being returned to shareholders through an on-market buy back.
Summary
Collins St Asset Management
4 Mar 2024
$1.30
- Collins St Asset Management is pleased with Boom Logistics' recent performance, noting high utilisation rates approaching 90%.
- The company continues to invest in its crane fleet, ensuring modern technology and appropriate age, with a current weighted average age of 7.4–7.5 years.
- NPAT guidance is set at $5.5 million, reflecting a 10% increase, while Net Tangible Assets remain at $0.26 per share against a trading price of $0.13.
- With a gearing ratio of about 40%, Boom has secured a new finance facility of $145 million to support fleet investments.
- Cost control has been effective, with a flexible workforce allowing for operational efficiency.
- Pricing strategies have been reset, enabling Boom to pass on costs and improve profitability.
- Contracts worth $40 million have been signed, with revenue growth in all segments, particularly a 60% increase in the renewable sector.
- Ongoing maintenance of approximately 3,500 wind turbines in Australia presents a recurring income opportunity for Boom.
- Strategic asset sales are underway, and the company is considering capital management initiatives, including an on-market buyback.
- Potential for M&A activity exists, as Boom trades at about half its net tangible assets, making it an attractive acquisition target.
- Possible buyers include international players seeking scale or local firms looking for bolt-on acquisitions to enhance capabilities.
Summary
Collins St Asset Management
30 Sept 2020
$1.00
- Boom Logistics offers crane and other lifting solutions for hire, including operator services and maintenance.
- Despite an abysmal earnings per share over the last 8 years, Boom has successfully paid down over $100 million in debt.
- The company generates strong free cash flows but shows negative earnings due to high initial equipment purchases.
- Depreciation of expensive equipment creates a perception of ongoing losses, despite the actual profitability of Boom.
- Management is now leasing part of its fleet due to shareholder pressure, which adds value through operational resources.
- The complex nature of the business model and accounting practices have obscured the company's value from investors.
- Collins St Asset Management believes Boom is undervalued at 10c per share, with an estimated worth of roughly 27c.
- Valuation metrics suggest a conservative target of 25c based on future cash flows.
- Engagement with management aims to ensure that the intrinsic value of Boom is reflected in the share price promptly.
Summary
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
ANALYST INSIGHT
Equity Research Analyst
"Despite eight years of negative earnings, Boom Logistics appears to be a hidden gem, generating robust free cash flows while tackling significant debt. Once the complexities of depreciation are unraveled, the true value of this company could finally shine through."
Last Updated: 09 Sept 2025
Query The Data
Frequently Asked Questions
Who is investing in Boom Logistics Limited (ASX:BOL)?
Fund managers including Collins St Asset Management have invested in Boom Logistics Limited (ASX:BOL).
Why do fund managers invest in Boom Logistics Limited?
Fund managers are investing in Boom Logistics Limited due to its strong free cash flow generation despite a history of negative earnings. The company has successfully reduced over $100 million in debt while managing substantial depreciation from new equipment purchases. This unique business model, which includes leasing and sub-leasing cranes, provides ongoing revenue and operational support. Fund managers believe that, at current valuations, the company is significantly undervalued, with potential for price appreciation as it addresses its accounting complexities and aligns its strategy to enhance shareholder value.
What happened to Boom Logistics Limited (ASX:BOL)?
Fund managers are investing in Boom Logistics Limited due to its consistent profit growth, evidenced by a 2% revenue increase to $264 million and a significant 38% rise in earnings per share (EPS) to 22 cents. The company benefits from exposure to renewable energy and infrastructure spending, alongside a reinstated dividend and a $4 million buyback plan, which represents about 7.3% of shares. Despite modest revenue growth and recent leadership changes, the company has achieved seven consecutive profit upgrades and is considered reasonably priced.