The NPAT margin is unfortunately really low indeed. The current construction enginnering sector is no place for a management wanting an easy ride. However, I believe that BSA is oversold at its current valuation.
This is not a high growth stock. It's a business in a challenged sector, but still managed to
(1) stay profitable through disciplined contracting, diversification of services (both new build projects and maintenance and contracting for Foxtel etc) and customers and
(2) showing some growth in revenue (see H1 report) through both acquisition and organic growth, while maintaining low gearing and
(3) maintaining strong free cash flow both unleveraged and leveraged for the last few years providing healthy dividend returns to shareholder.
This is one of good value....
I've only started trading / investing in shares last year, and simply stumbled into BSA by luck last November. Only at its last reporting did I have a good look at it and since then strengthened my conviction in this company. What do you think?
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