I thought the Q4 result was a good one, and they exited the period on a good cadence which should continue into FY25
So, having navigated the rapids very well over the past 12 months, with good cost control, there is now clear water ahead.
The company will now be cycling weak comparative periods, which involved significant de-stocking from excess inventory levels held due to supply chain problems following Covid, so it would come as no surprise if the guidance of 3%-8% EPS growth gets upgraded to a lot closer to 8%, if not above it (depending on what raw material prices do in coming months... so far, it looks like they are already providing a tailwind)
Sub-15x P/E multiple doesn't sound at all demanding for a well-managed, shareholder-value focused, +20% ROE business growing at high, single-digits.
Sure, 20x is not the right multiple, but maybe somewhere between 20x and the current multiple is justified.
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