Its the margins. the most recent FY result was only 6% operating...

Its the margins. the most recent FY result was only 6% operating margin. The true value is to be unlocked in improvements in those narrow margins. Additional revenue growth and an operating margin of closer to 9% and TPW can almost double earnings. A doubling in earnings would take a PE ratio from 100 down to 50. So the current price isn't totally crazy

That being said given its massive cash position management has no excuses for not being able to improve those margins. They have so much flexibility & leeway. Buffet always said if a company hoards cash and doesn't return it to investors or reinvest it efficiently back into the business, then management has basically hit a brickwall.

So when TPW next reports if its operating margin has not improved and its still hoarding the cash, the SP could get bloody. The HY report should be looking at between 12-15m. That's right, match the last years full earnings in only 6 months. If it cant achieve that then it shouldnt be trading on a 100+ multiple.