nicoleleeAn outstanding growth record with very impressive...

nicolelee

An outstanding growth record with very impressive margin performance over the last 10 years. A true growth stock.

Oh how I wish we could go back to the heady days of rudds defunct RSPT, and I could indulge myself with greater greed when buying MND's stock!

As Camden55 calls it the 'Recency Effect' was in favor of MND buyers at that time when the markets were scared of the possibility of delays/cancelations in large resource infastructure projects.

They have grown revenue at over 25% CAGR over the last 9 years, and remarkably without resorting to debt.

What is most impressive is the margin performance as below;

EBITDA Margin %

FY02 7.75
FY03 6.29
FY04 7.31
FY05 7.46
FY06 9.20
FY07 9.76
FY08 10.95
FY09 10.35
FY10 10.15

EBIT Margin %

FY02 4.42
FY03 4.14
FY04 5.39
FY05 6.09
FY06 7.79
FY07 8.68
FY08 9.61
FY09 9.00
FY10 8.83

While MND is not cheap now trading on a FY11 PE of 18, I can't perceive at this stage a time when I would want to sell my MND holding. It has become one of my most committed investments.

And i do believe the best investment is one that doesn't need to be sold, as it creates perpetual growth in capital appreciation and an increasing dividend stream.