NCK the quiet achiever

NCK has been listed on the ASX for 12 years, since then it has grown:

- NPAT from $8 million in 2005 to $26 million (as per the latest profit upgrade) in 2016
- Equity from $12.3 million in 2005 to $53.3 million (as of December 2015)
- Sales from $54.2 million in 2005 to at least $180.5 million in 2016
- Net Profit margin has never been lower than 6% (in 2009 during GFC), with 2016 margin to be at least 12%
- From 2005 to 2016, it has paid a total of $98 million in dividend
- From 2005 to 2016, NCK has maintained positive net cash balance every single year
- Number of stores has grown from 17 in 2005 to 43 in 2016, with 75 being the aspiration target

There is only one thing that hasn't grown at all, and that is the number of shares outstanding. From 2005 to 2016, it has stayed at 81 million shares.

During this time, NCK has managed to weather:
- Stiff competition from the likes of HVN, FAN, Super Amart, Ikea and various furniture retailers.
- GFC in 2008 and the mining downturn since 2012

It is obvious that management has found the perfect segment in the market where to position NCK.

The CEO has been with the company since 1982 and recently he has increased his personal shareholding in NCK after the share restructure which saw his siblings exiting NCK completely.

Future growth will come from further expansion into WA and regional centres on the east coast. Entry into NZ will probably happen in the next 5 years.

When other market darlings such as ARB, CSL, RHC carry a P/E ratio in their twenties, even at the current all time high price, NCK's P/E is only 16.

Housing market downturn, Brexit and other crises will no doubt slow NCK down, but I don't believe they will be able to stop NCK's long term track record of measured growth in all of the important metrics.