As seems usual, people seem to be focusing upon the wrong numbers. Overall growth of 20% with 2/3 of a heavily Covid affected half complete against a cycling a strong, Covid unaffected, H1FY20 is pretty good as far as I am concerned.
My back of the envelope calculations assume an 18% EBIT margin for FY21 off 500m in sales (20% growth on 197m from memory with Mocka on board FY20 ~250m in sales, and H2 is normally 52% compared to 48% H1), gives me an EBIT of 90m and NPAT of 50-60m, for a forward PE ~10. FY22 will have the withdrawal of Jobkeeper support + some economic recovery, particularly in stores + the supply chain initiatives, which should result in maintenance of margins and I expect some continued low hanging fruit top line growth with the current upsizing/expansion/Mocka AU strategy. In light of all of this, I can't see how the current valuation is warranted, whilst many vastly inferior businesses trade on ridiculous multiples, but hey, what do I know- just another mug retail punter!
Very Happy, page-29
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Last
$1.88 |
Change
-0.015(0.79%) |
Mkt cap ! $328.4M | |||
| Open | High | Low | Value | Volume |
| $1.90 | $1.90 | $1.87 | $354.4K | 188.1K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 6 | 33200 | $1.87 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $1.89 | 1550 | 1 |
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| Last trade - 16.10pm 11/07/2024 (20 minute delay) ? |
| ADH (ASX) Chart |