Fully agree with what you say about the valuation.
We need to take into account their large level of net cash.
It is the reason why my favorite valuation tool remains the free cash flow yield, which is Free Cash Flow / Enterprise Value.
As indicated in a previous post, SRV has now a free cash flow yield of 12 % (taking into account only the maintenance capex).
The history of Servcorp shows that the company has a good understanding of its market.
So, I suspect that despite the deterioration of the employment market, Alf has found new opportunities in its market, due to less competition or other reasons (new type of customers on his market ?).
It would be interesting to understand the profile of the new customers which explained why the company was able to increase its number of customers by 10 % in FY 24.
Too bad that he is not really sharing the reasons why he decides to increase his office capacity now.
Regarding the cyclicity of the business, the best answer of the company is probably its large geographic diversification.
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