A VERY volatile track record
Quote:
Originally Posted by
winner69
EBITDA to grow by 6% to 17% is guidance
Suppose current trading at 26 times trailing eps and under 20 times forecast eps is reasonable for a ‘company transforming itself’
Comvita has a really shocking track record of huge misses with its guidance and a track record of one good year being followed by a very bad year(s).
For my money, this is still an agricultural stock with all the risks associated with agriculture, (weather, drought, excess rain, disease, pestilence etc) and a healthy dose of skepticism needs to be applied to any forecast they make along with a realization of the risks applicable with argi stocks.
My yardstick for agri stocks is a no growth PE of 11.5 and adjust from there for their history and any other known factors and risks.
Paying a trailing PE of 26 for a stock with their track record is not for me.