"It is clear that growth has stalled this year, compounded by...

"It is clear that growth has stalled this year, compounded by margin contaction. Gross Profit Margin is great but the cost of doing business has noticeably increased."

I wouldn't say growth has "stalled"; the top line grew by 9% in each half of FY2024, and they are cycling very strong pcp comparatives (+39% in DH2022 and +16% in JH2023).

As for CoDB, yep, that has ratcheted up, in the last two half years:

CoDB-to-Sales:
DH2022: 27.8%
JH2023: 27.0%
DH2023: 31.7%
JH2024: 29.3%

However, it warrants pointing out that this was influenced to a reasonable degree by investment in "good" costs (i.e., costs which drive development (R&D) and brand awareness (Advertising/Promotional"), which increased by a very hefty 77% in FY2024 vs FY2023.

What one might describe as "bad" costs (i.e., Employment, Administration and Other) grew by 23%, although it is certain that some of these expenses have been incurred in driving longer term growth - setting up shop in the USA doesn't cost zero, that's for sure.

So, it's bit tricky to know whether this is a mediocre, or in fact a very good-quality, result.

Glass half-empty minded folk might quit reasonably view it as a bit of a "gunnah" company.
That certain key executives have significant shareholdings makes me inclined to have a glass half-full mindset.

But the business is obviously at a critical point in its corporate evolution, and the road is littered with the carcasses of failed Australian companies that have sought fortunes in far-flung geographies, so portfolio sizing needs to reflect that.

I suspect it might be one of those situations of a stock becoming an even better investment at a price 40% or 50% higher after some de-risking has occurred.

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