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0.98%

$38.26 arb corporation limited.

Yes, that's spectacularly good "lack of growth".

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MarsC

4,240 Posts.

455

14/06/24

11:19

Post #: 74313388
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Originally posted by madamswer: ↑

"revenue isnt growing huge though. flattish on revenue. probably a bit overbought here on the margin improvement/spike in margins."

I'll grant you that it isn't unambiguously undervalued, but I think lack revenue growth is a totally a flawed take.

What you are seeing as flat revenue is a result of a previous corresponding base which was artificially elevated due to the extended "escape-from-Covid-lockdowns" demand (denoted by the yellow region above the trend line in the chart below):

View attachment 5977423

But if you compared the latest Revenue number with the Revenue run-rate prior to the Covid level distortions (so, DH2018 and DH2019), you'll find that the CAGR is around 10%pa.

So I think it is highly premature to declare ARB's revenue is ex-growth.

As for your adjective, "spike", in referring to margins, that seems to imply the current gross profit margins are unsustainably extreme, when the bulk of this latest "spike" has merely been a recovery from levels that were uncharacteristically low (record low levels, in fact, as can be seen in the GP Margin chart included in an earlier post on this thread).

.

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Yes, that's spectacularly good "lack of growth".

ARB Price at posting: $36.84 Sentiment: None Disclosure: Not Held
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(20min delay)
Last $38.26		Change -0.380(0.98%)		Mkt cap ! $3.150B

Open	High	Low	Value	Volume
$38.35	$38.72	$37.68	$8.240M	215.9K

Buyers (Bids)

No.	Vol.	Price($)
1	576	$38.20

Sellers (Offers)

Price($)	Vol.	No.
$38.26	1117	4

View Market Depth

No.	Vol.	Price($)
1	576	38.200
1	10	38.070
2	596	38.030
1	419	38.010
1	419	37.970

Price($)	Vol.	No.
38.260	941	3
38.300	1560	2
38.340	419	1
38.350	471	1
38.380	180	1

Last trade - 16.10pm 19/06/2024 (20 minute delay)

ARB (ASX) Chart

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