it is certainly rock bottom for fast food global brand in billion $ revenue category. Pick up companies like MacDonald, DPZ, Starbucks, Coca Cola , which are 18 to 20 times EV/EBITDA range on fwd figures. If you take the EBITDA of DMP for FY 2024, underlying figure was $362 m. That is around 11 times EV, isn’t that cheap?. This category of services are low margin, high volume, slow growth industries but last for ever. Once DMP shake off the current blues, I am sure shareholders will value to appropriately. If you ignore the Covid period boost to the earnings, current earnings are continuation of pre Covid growth.. The shareholders got carried away giving 100+ valuation ratios during Covid period and paying the price for it. Now that Covid period growth is taken off, investors have gone to the other extreme. Also expansion due to the good tmes during Covid prompted DMP management to expand far too fast. Now that new CEO is focusing on store profitability, sentiment will change when the first set of flat to low positive new numbers come on screen. Slow process but valuation are gone far to low.
DMP Price at posting:
$29.37 Sentiment: Buy Disclosure: Not Held
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