Hi pCap , I have sort touched on this in a couple of previous posts- bringing peers SFH & NBL into comparisons as well as looking back to good old times in late 2016 when our share price was 75c ($102m) & the retail sector was more optimistic than today- earnings then were EBITDA $23.9m (9% margin) , NPAT $11.3m - Mr market valuation metrics then were only 4.25* EBITDA and 9 times earnings.
Whilst I agree PGR has some upside the fact that in good times the market only valued PGR at 4.25times EBITDA compared to what the market is paying for both SFH and NBL - sort of begs the question - why- it can only be because their business models are much more profitable - EBITDA margins of 15% & 10% respectively against PGR of 5%.
I also note that PGR has a much greater % wholesale business approaching 50% which brings lower margins ( 8.3%) - even our retail direct EBITDA margins are only 10% at the moment.
