At current share price, MBH is trading at about 30x PE or about 16x free cash flow for FY22. So it is reasonably fully priced at these levels.
The somewhat disappointing thing for me in their announcement was that they didn't upgrade expectations for FY22 - still at $100m sales and margins are under pressure with COVID related supply chain issues. I was hoping for an upgrade to allow me to put a growth element to my valuation model, but it was not there.
2nd half is always much lower than 1st half - I was estimating $37.5m sales for 2nd half and their pronouncement of maintaining a $100m annual target has not allowed me to shift from that number.
Don't get me wrong. This is very much a growth stock with a strong story to tell. I just think we will not see much upward trajectory on the share price as a result of this announcement.
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