WestStar doesn't have its own website but Alltype Engineering...

WestStar doesn't have its own website but Alltype Engineering and SIMPEC do. Would be nice is WSI got its own.

With respect to contracts, WSI already has high-calibre clients on the books. However, most of the discount in the valuation is due to the contracting risk. 1) Total contract values vary greatly from year-to-year for mid-tier industrials and given the recent acquisition of Alltype, its somewhat difficult to ascertain what the "normal" or "expected" annual base is for revenue.

Also don't forget execution risk in this space. Only have to look at what Monadelphous is dealing with at the moment with RIO. Whilst they have the size to survive a suit of that size, a smaller player like WSI cannot afford to stuff up a contract like that.

It would also be nice to know how much of the most recent quarter's cashflow was from work actually performed in FY20. A quick look at their annual report shows that a lot of revenue was deferred.

I'm definitely not saying that a P/E ratio of 2.5 based off annualised numbers from FY21Q1 isn't attractive, even given what I've stated above, but its always worth knowing the factors that other market participants might be considering.

Vader