Let the charting thread focus on charting – it should not be a...

Let the charting thread focus on charting – it should not be a catch-all thread, so I opened a new thread. This post follows my posts 55992599, 56004086, 56006732 and 56020640

I read (link in postscript) that Jarden thinks that miners may be fairly priced, but the mining services sector is underpriced, except for NWH. I'll accept this as a loose truism, and concentrate on the underlined words.

I surmise from what I read (links in postscript) Jarden based its views on the mining services sector based on the value of the stock relative to NTA, and that is meant to be a broad-mesh filter, not a truism. Without knowing the relative facts, and being disinclined to delve into the issue, my comments are as follows:

1. Any company in that statistical population that over states its NTA (mainly by under deprciating/impairing) would look better than it should. In the years post Annus Horibilis, NWH undervalued its assets, because of the enthusiastic impairment in that year. By now, that one-off factor would have been eroded to being inconsequential, but knowing Management's conservative accounting mindset, I suspect there may be relative-to-sector NTA understatement of NTA.
2. The higher up the grunt-to-smarts ladder that a company is, the higher its profit margin tends to be, and hence the higher its SP relative to NTA per share. That METS is now well established, and hurtling to becoming a $1B-revenue business suggests NWH may now be above the sector's average rung in that ladder.
3. Just as I recently looked at EPS, EBIT and DPS to get three rough views of NWH's possible range of share valuations, including the NTA viewpoint is valid, and should be considered, as should other factors.
4. If one could gain a relative measure of managements' intelligence, astuteness, aptitude and ethics, I moot that one should treat that as an important factor, but you won't see that in as mathematical factor used to create a share valuation, but it is there, and in my use of rule-of-thumb methods like EPSxPER, it is hidden in the PER.

Postscript

• https://www.fnarena.com/index.php/2021/09/10/better-times-ahead-for-contractors/
  
  “Jarden assesses stocks in mining services, with the exception of NRW Holdings, are trading a material discount is to valuation. Emeco Holdings ((EHL)), trading at a discount to NTA (net tangible assets), is assessed to have the most attractive outlook in the sector.”
  
  “. . . Larger companies have borne the brunt of the constraints, too, having to manage thousands of employees across major projects, experiencing the greatest margin pressure. This includes Monadelphous and NRW Holdings ((NWH)), the broker points out.” The broker being Bell Potter.
  
• https://www.********.au/2021/06/08/best-asx-value-buys-for-the-commodities-supercycle/ “. . . While the Monadelphous Group Limited (MND) share price and NRW Holdings Limited (NWH) share price are at a premium, they are trading below their respective historical averages. . .”