Something being missed is that YFZ will actually perform better on the economy re-opening. People commonly buy these pre-packed foods to take to the office/place of work- now everyone is returning to work i expect sales to reaaccelerate into FY21. They also do alot of business to business work and catering for functions and work events - this did not occur in FY20 but will re-accellerate into FY21. This is supported by the FY21 Pro-forma outlook re-accellerating.
See below (line 1- Net Revenue, Line 2 - Gross profit, Line 3- Gross Profiit Margin)
We are seeing growth rates across the top and bottom lines along with margin expansion. Additionally the valuation is less than a quarter of what peers are trading on.
VALUATION Comparison (Extremely cheap!) from a leading australian brokerage firm :
YFZ is trading on 0.8x FY21 EV/Sales
They are outperforming peers in every catergory according to customer reviews:
