It sounds like you are keen to understand the industry better. I find reading the TYR prospectus immensely helpful in understanding the business model and the competitive landscape.
The market doesn’t seem to value this type of business using an EBITDA multiple, if you have a look at TYR, it’s on a GP multiple. Whether this is the right approach is a question for another day.
in terms of EBITDA level post NZ divestment nobody knows, I suspect not even management. All I know is that on a unit basis, Australia is immensely profitable, with margins 3x that of NZ.
The real question is how long it will take for them to reach scale, noting Aus will be sub-scale for sometime. But subject to the current monthly terminal additions being maintained it won’t take long for them to be at scale.
SMP Price at posting:
53.5¢ Sentiment: Buy Disclosure: Held
(20min delay)