https://www.nzherald.co.nz/business/...KKHIXADW7JF6Q/
Targeting $2b sales in 5 years but oh my goodness that's less than 11% per annum average top line growth over the next five years, assuming they can even meet that target, (remind me again, how "good" are ATM executives at forecasting lol) - even if achieved that's slow growth in anyone's language.
But wait there's more - Targeting margins "in the teens" in the mid term but consensus average analyst expectations are for margins over 19% by FY24 and sales over $1.7b that year. Margins used to be 30% :eek2:
I think its clear
this is a downgrade and this slow growing company is a far cry from the rate of growth and margins it used to trade on years ago and the PE was just on 30 when it was growing much faster back then but on yesterday's price the FY22 forward PE is a whopping 42 !
I think a fair PE for how this company is trying to slowly grow in the years ahead is no more than 20 which suggests on FY22 average broker forecasted eps of 17 cps this company is worth a fair value of about $3.40.
Oh dear, run for the hills :eek2: