"We believe that Dusk looks highly attractive at the current valuation. The company has a number of highly attractive factors that are conducive to future returns. These are:
zero leverage,
high margins and cash generation,
global expansion potential,
broader tailwinds for their specific sector, and
an aligned and disciplined management team.
The company looks highly undervalued when you examine its valuation on a peer comparison basis.
Additionally, it has paid a gross yield (including franking credits) of around 11% over the past financial year, based on today’s price. We expect the company to continue to pay a sustainable, reliable dividend stream in the coming years, while holding significant upside potential from further expansion in its activities.
We consider the fair value for Dusk to be around $5 a share, considering all the factors mentioned above. In a nutshell, similar to our original thesis, we consider Dusk to be a Growth company that's priced as a Value stock."
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