MAD is in a different industry but I think this is still a useful comparison.
So MAD just had a big year. Solid growth in revenue & profit. Their share price basically tripled.
MAD FY22 revenue: 32% increase
ACF FY22 revenue: 40% increase
MAD FY22 NPAT: 44.5% increase
ACF FY22 EBITDA: 49% increase
Looking at these growth figures, ACF matched, if not, outperformed MAD last financial year. Yet the ACF share price is only up around 20%.
On top of this, ACF has a more favourable net profit margin:
MAD FY22 net profit margin: 6.9%
ACF FY22 net profit margin: 10.6%
I am a patient shareholder and happy with any gains, but just interested as to why the share price reacts differently between companies.
Here are some potential reasons:
- MAD has been earning consistent profit for much longer than ACF
- Construction industry sentiment vs mining industry
- MAD earn almost 3 times more revenue
(20min delay)