A Contrarian Buy, page-38

I really don't understand what annual reports/financials you've been reading chief - but

1. As far I'm aware MYR has averaged a very consistent and steady A$2.7b+ in sales annually over the last 6 years despite an exceptionally poor retail environment which has coincided over that same period but probably started in earnest in early 2014. Additionally typically when we've seen retail sales decline below 2% which we are just at that threshold now we've seen a reversal - and this goes back as far as roughly 1991.

2. Net profit before abnormals has copped it since 2014 as can be seen in diminishing net profits year on year. However that is not surprising in a very tough retail sector which has claimed many casualties. MYR has been resilient even posting a $70m net profit before abnormals last fin year - only $30m below the FY2014 figure.

3. The company still pays out a handy dividend which equates to a roughly fully franked 7.6% annual return on invested capital.

4. From a price to sales valuation MYR is at a paltry .2 times in a very cheap sector where the average is roughly .7

5. Price to book is at .5 meaning 50 cents of invested capital gives you $1. Warren Buffett calls it buying dollar bills with pennies.

6. MYR is rapidly modernising with its online sales and cutting costs dramatically which will improve its chances of growth when retail inevitably turns.

7. Unless you think retail is dead and MYR a zero then it's a screaming buy in my opinion.

A classic Buffett and Graham investment.