Profitable week! But an expected rerate considering the results. And likely to continue to rerate gradually, possibly after some consolidation. The longstanding traditional profit growth itself in my opinion warrants holding over many, many years.
However, there may be a catalyst incoming, that could potentially bag this multiple times... Could Auxilium have the potential to reach the calibre of Netwealth and Hub24 offerings? Possibly. Success will depend on its ability to differentiate itself and capture a significant market share. And according to Indy, Auxilium has this potential. We are at early stage in the "disrupt the disruptors" Auxilium platform, but no harm in comparing:
FID: $345m market cap.
NWL: $7.7b.
HUB: $6.4b.
Not saying we should be anywhere close nor should we be, but it's a long runway!
At the very least at current valuations FID deserves comparative earnings multiples (if not more, due to the gap in mcap).
FID:23pe
NWL:93pe (wow really!)
HUB:140pe (yikes!!)
Ok so maybe not comparative, as IMO NWL and HUB multiples are extremely high, and I wouldnt be buying up there. But say FID deserves 50 pe. For sure it does with Auxilium potential. Still way undervalued after last weeks run.
Regardless, even without Auxilium, Fiducian's stable and proven products and services are the reason im here for the long hold.
FID Price at posting:
$10.95 Sentiment: Buy Disclosure: Held
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