Deeply impressive. Let's not forget that they were struggling to break even with Glasson Au in 2014-2016. Contrast that now with just over 49% of group profitability coming from over the ditch! Glassons Au earned 27.5 cps last year and the CAGR in eps over the last 3 years has been 27% per annum. (Can't use my standard 5 year eps growth measurements as growth in eps from a loss of $1.9m in 2016 gives a nonsense answer).
What we can say with quite some assurance is that they have really cracked the Au market and that much was not completely obvious back in 2018 when the shares were trading on a PE of 13.7. Further, the potential for ongoing strong growth in Australia with their very lite existing store footprint and a total addressable market of more than 5 times the size here seems obvious.
In my opinion the key to understanding the value embedded within the group is to break it into valuing two segments.
Choose you own PE for Glassons Au which had 27.5 cps earnings last year and eps CAGR of 27% per annum.
Then choose your PE for the rest of the group (eps 28 cps last year) that has been ostensibly flat for many years.
There is no analyst coverage so people have to work this out for themselves.
Do I think Balance has become unbalanced for thinking of this in due course as a $10 stock ? Absolutely not !!...but good things take time and in the meantime there's those handsome dividends to enjoy :t_up: