I don't hate this so much to be honest. I think if I was looking for a short term trade, perhaps not where I would want to be. But if you are a long term investor looking for value at the micro cap end of things, not such a bad option.
Look through those figures and break out the 1H vs 2H, the results look a bit different. 1H revenues was $46m, meaning they are guiding for $49m in 2H. NPAT was $2.69m in 1H, meaning they are guiding for $4.30-4.8m in 2H. While this is a reduction compared to FY21, if you were to normalise the 2H22 it would actually as good as FY21.
It seems that they could be through the worst of it is my guess, and that they may be returning to their longer term growth. PE may be looking like ~13x at this point, but it could be a normalised <10x for a company that has been growing 7% CAGR, has 7-8% FCF and paying ~4% dividends. Sleep easy balance sheet with cash on hand and no risk of dilution.
Just saying, I don't hate the results, but who knows how the market will respond.
SDI Price at posting:
80.0¢ Sentiment: Hold Disclosure: Held
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