I follow the stock but I don't have too much to say about it.
I dont like how margins are slipping away. Net profit margins:
NP Marg EBITDA Marg
2011 13.16% 16.31%
2012 13.17% 16.82%
2013 9.04% 13.2%
2014 9.45% 12.96%
2015 9.63% 12.95%
2016 6.34% 9.1%
I realise that this is to do with the raw materials and therefore the currency and that they are doing a good job to keep other expenses flat but it speaks to pricing power that they can't maintain their margins. The 2016 figure may well be impacted by the product and sales mix (and SCE having lower margins) but the overall trend is down.
EV/EBITDA of 6.3 is cheap but its not a steal at that price until it can turn things around. I'm waiting on this one.
LGD Price at posting:
23.0¢ Sentiment: Hold Disclosure: Not Held
