Bit quiet around here. Discovered this company the other day while sifting through micro-caps for some long-term compounding opportunities and I couldn't believe what I was seeing. At current prices you're getting roughly 25% FCF yield with 25-30% ROIC.
I suppose the stock is somewhat pricing in a bleaker outlook re. housing and renovations. Obviously we've had an cracking housing and renovations boom over the last 24 months, but with IR rising it looks like it might moderate, although I'm not sure I see it moderating as much as SP seems to be pricing in. What are your thoughts?
JYC seems to have a solid growth runway ahead of it with a solid balance sheet and good fundamentals at an attractive price. Ran a DCF the other day, and even with a blended figure of 20/30/50 bull/base/bear case, the valuation returned as $4.12. Bear case includes recession FY23 with no full recovery until FY26, and even that returns $3.20, so either stock is massively undervalued, or my forecasts aren't accurate.
Looking to start building into a position at these levels, could go lower ofc, but hardest thing is the liquidity on the stock. Size of the bid/ask is something to behold at some points. Suppose that contributes in part to the volatility.
Looking forward to hearing your thoughts. All IMO and not financial advice, DYOR
JYC Price at posting:
$2.52 Sentiment: None Disclosure: Not Held
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