A steady company

Hi,

Just began to look at this company.
Main elements I found so far :
- very steady business, as FY 23 revenues and NPAT are on a similar level than in FY 19,
- the main problem seems that there is a regular decrease of EBITDA margin from 24.4 % in FY 19 to 21.8 % in FY 23 (including in FY 23 despite a 5 % price increase in ANZ),
- this margin decrease is not due to productivity, as their revenue/employee has increased by 40 % since FY 19.

The main interest of this company : a high level of free cash flow yield of 10 %+.
No major one off in their cash flow from operation in FY 23, which has returned to the level they reached between FY 19 and FY 21.
All the more interest that their earnings have been very stable since FY 19.
It explains why the company is able to pay a high dividend of 13 c last year (dividend yield of 6.9 %).

Looking at the most recent period, the company has been improving its margin during H2 vs H1, with an EBIT margin of 17.7 % during H2 vs 16.5 % during H1.

Given these elements, not obvious to understand why the stock is close to the lowest level for the past 5 years.
Here are the main explanations I could find why the market is cautious about GWA :
- cautious view on the renovation market (some say that renovation represents 60 % of their business) and GWA does not expect improvement on this segment before the middle of next year,
- new major competitor entering the market and focusing on Australia (source : The Call on Aus Biz in Aug 22).