F21 NPAT forecasted at 24m which is 20 eps = 50 p/e
Most analysts are calling for a tail off in earnings circa FY22... but its going to be free cash flow rich by then. It has reached scale and would not surprise me to see it acquire an asset considering its debt free.
I think the tail off in earnings is a good thing for holders as upside surprises could and do indeed occur.
Depends on how you view management and see now reason why it can't/won't branch into new markets in the future like home appliances when it reaches full scale in 2-3 years till then 15-20% growth is minimum and its all about customer experience and repeat shoppers.
Net margins will remain low but return on equity will remain high 25-30%
In other words if NPAT and shareholder equity keeps climbing over next few years and maintain high ROE then it's one hell of a sexy stock.
TPW Price at posting:
$9.98 Sentiment: None Disclosure: Held
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