Would like some opinions here. With the consumer discretionary index jumping up on the back of strong spending data, this one continues to go nowhere, if not backwards. A PE of 14-15 just seems so low with earnings growing fast, relatively low debt, in a sector that has an average of circa 19x in healthcare, or circa 30x in consumer discretionaries.
To me they are rapidly expanding in a space that appears relatively poorly organised - a lot of these clinics Australia wide are single businesses that can't scale like Silk. All they have to do is continue to grow at their current pace to make their current valuation look very cheap - and with their goals and early execution of the eastern state expansion, I don't see why they can't outperform their current rate of top line growth.
Would love to hear some differing opinions here, and any warranted pushback on why they aren't undervalued. I really see this as one of the true hidden undervalued gems on the ASX.
SLA Price at posting:
$1.74 Sentiment: Buy Disclosure: Held
