I don't mind PE of 20, 25 or 30 but only when the company is paying regular div's and their market is growing rapidily.
SMN are in a different phase, Here's why.
FY 2023 revenue $22m with an loss attributable to shareholders after tax was $3.3 M FY 2024 revenue $27m with an loss attributable to shareholders after tax was $1m.
So an increase of $5m revenue helped reduce the size of the loss by $2,3M. So another $2m revenue in 2025 for about a zero loss.
I also did some digging back to the last 4 annual reports 2020 to 2024. The accumulated loss for 4 years was about $12m. I didn't dig back further for the previous decade but safe to say that would be about another $18m accumulated loss.
So a ballpark figure of about $30M accumulated loss for shareholders.
And increase in revenue of about $60m to about $87m would cover the accumulated loss. Then there is debt to repay of about 5 million.
I have noticed talk of a return of capital to shareholders mentioned in the past. That wiping of accumulated loss would allow for some of that.
I don't believe that the PE ration of 30 applied to that increase of $60m in revenue would be reflected in the rise in SP,
Some considerable rise in SP would occur obviously , but not at that 30 PE ratio.
After we are paying regular franked dividends , with growing market penetration then above PE of 20 is on the cards.
How long will it take to increase that revenue by $60m? I would only be guessing,
Just thoughts DYOR.
cheers Lies
SMN Price at posting:
50.0¢ Sentiment: Hold Disclosure: Held
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