To anyone who says markets are efficient—I’ll get them to look at the price action of this stock?!
After announcing a stellar 1H25, with NPAT up 52% on PCP (only slightly hindered by management’s flaccid justification for headcount growth), we’ve almost lost all the gains since the announcement?!
The business is on track to earn ~20c underlying in FY25. That puts them on a P/E ratio of 28.2—which, for a business expecting 20–25% long-term bottom-line growth, seems absurd. Especially considering some of the P/E ratios in the larger end of town with other growth names (PME and even WTC despite it’s board being currently non-compliant).
On top of that, there’s the very real prospect of a merger with Future Super (as seen in the AFR), making the relative value even more absurd.
I’ve been heavily buying for the last six months, and I won’t be stopping anytime soon.
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