This is a company that is quietly impressive. They produce a Power Point presentation twice a year with between 10 and 20 slides and that's about it. There's not a lot of fuss.
In the interest of brevity If you go back to the 2015 financial year and look forward, you will note that the number of issued shares haven't altered. The EPS of $0.05 in 2015 has increased to $0.075 in 2021 which represents a 44% increase over the seven years or roughly 6% per year so it hasn't shot the lights out but there have been issues settling the Brazilian business down, dealing with the the Brazilian currency, facing COVID disruption and a high valuation of the Australian dollar across the last two years.
They distribute, on average, about 50% of their earnings as dividend and have built up the equity from about $58m at the end of 2015 financial year to about $80m at the end of the 2021 financial year.
They have no debt and provide a return of about 13% on invested capital, up from about 10% for the 2015 year.
With the price a tick over $1, the P/E ratio is about 14 which seems comfortable to me.
If all the ducks finish up in a row, Madam's numbers could be achieved but, as we all know, the ducks don't always do as they're told.
If there's one thing I watch a little although not overly concerned at this stage, it's inflation. I normally ignore all of the extraneous stuff as you can go slightly mad thinking about that all of the time. But a change in interest rates and the ensuing reduction in disposable income may hurt SDI revenue as the emphasis on whiteners etc, away from amalgam, means they're now a provider of discretionary products for a discretionary service rather than staple products for a staple service. (It could be argued that young people see bright, shiny teeth as a necessity which would blow that discussion point out of the water).
Good luck with your contemplations.
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