I agree that it looks cheap. However, the market is probably also right in thinking that earnings will drop in the current environment. Despite the mining division being only about 25% of business, the civil works rely heavily on mining customers - e.g. by far the biggest contract wins at half year were in rail development for FMG and Wickham housing development for Rio Tinto. Plus, would expect pencils getting sharper all over the sector when it comes to tenders and paying variations, so working profitably could get tough.
On the other hand, the debts are all in hire purchase, so they seem in fair shape to weather a storm. I can't see any problems with existing major projects being reported, so would think they will still be stashing cash.
Probably current price is cheap, but no guarantees it won't take a year or three to steady and pick up.
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