EBIT isn't falling behind, it is being deliberately managed to bring additional revenue growth.
Please don't invest in this stock for stability of earnings or a dividend stream, for at least the next several years I expect this company to direct all income to further growth. Seeking improved earnings at the expense of capturing an expanding market would be very foolish from a longer term perspective, but it is the kind of thing some investors clamour for.
*shrug*
I will be a seller if the growth slows and the earnings become higher as that will signal either the market is saturated or management have become weak and started to listen to shareholders favouring income.
The normal trajectory for this type of business is to run at a loss to bring growth. It is a testament to how tightly managed and what a successful business FLN is that it breaks even while supporting such strong growth rates.
To be clear, if they keep growing now, the income stream in a few years will be much, much larger than if they focus on booking income now. If you want a stock managed to optimise earnings over growth, check out Telstra or one of the utilities funds.
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1 | 2955 | 0.175 |
1 | 200 | 0.170 |
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2 | 27804 | 0.160 |
Price($) | Vol. | No. |
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0.210 | 37810 | 2 |
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