"revenue isnt growing huge though. flattish on revenue. probably a bit overbought here on the margin improvement/spike in margins."
I'll grant you that it isn't unambiguously undervalued, but I think lack revenue growth is a totally a flawed take.
What you are seeing as flat revenue is a result of a previous corresponding base which was artificially elevated due to the extended "escape-from-Covid-lockdowns" demand (denoted by the yellow region above the trend line in the chart below):
But if you compared the latest Revenue number with the Revenue run-rate prior to the Covid level distortions (so, DH2018 and DH2019), you'll find that the CAGR is around 10%pa.
So I think it is highly premature to declare ARB's revenue is ex-growth.
As for your adjective, "spike", in referring to margins, that seems to imply the current gross profit margins are unsustainably extreme, when the bulk of this latest "spike" has merely been a recovery from levels that were uncharacteristically low (record low levels, in fact, as can be seen in the GP Margin chart included in an earlier post on this thread).
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Open | High | Low | Value | Volume |
$43.14 | $43.74 | $42.70 | $4.974M | 114.1K |
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No. | Vol. | Price($) |
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1 | 496 | 43.580 |
1 | 11 | 43.570 |
1 | 460 | 43.560 |
2 | 341 | 43.550 |
2 | 129 | 43.510 |
Price($) | Vol. | No. |
---|---|---|
43.650 | 287 | 1 |
43.800 | 535 | 2 |
43.840 | 341 | 2 |
43.860 | 1053 | 1 |
43.920 | 436 | 2 |
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