Boy, tough 12-months just behind KOV. In the results announced...

Boy, tough 12-months just behind KOV.

In the results announced today, while the profits and cash flows were flattered by Jobkeeper benefits, I think it was still a credible result excluding Jobkeeper subsidies (credible in that the company was still profitable to the tune of almost $4m in EBIT over the course of the past 12 months, which was a truly crummy 12-month period with plenty of operational disruptions.)

I don't think that there is anything in this result that will excite the market or induce any fresh buying of the stock. Conversely, the 6% Dividend Yield (sustainable) will provide downside support.

So while FY2021 will represent a Covid-induced pause on the inexorable road to cyclical high EBIT of in excess ~$8m (which would result in just 5x EV/EBITDA and 6x EV/EBIT), after its impressive rise over the past few years, I suspect the stock price will spend some time now marching on the spot.