My intuition is that this is a business that is growing. There is always going to be variation in growth rates including a year of negative growth after periods of strong growth. I am unsure of the reasons for the drop in 2024 but it would be inline with other global trading businesses who experienced customers destocking inventories after the surge during covid.
Revenue growth over the last 5 years is as follows;
I read somewhere, possibly in the IPO documents that the revenue CAGR since inception has been 9%. My base case would be growth in the mid to high single digits over the next 5 years.
Of course the drop in Revenue in 2024 was compensated by the rise in GP margin to a high 23.4%.
SP has appreciated a lot recently. Maybe its trading closer to the range of fair value now.
RDX Price at posting:
$4.51 Sentiment: None Disclosure: Held
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