Pinned valuation:
Why I like the business:
Recent H1 Update
Reading between the lines here, even with the slight decrease and outage, it appears that they have won a lucrative contract, and the price savings for in-housing freight will further improve margins.
Traditionally final dividend is much higher at the end of the year, and likely to be close to or similar to the 35-40c paid over the past few years.
Not a sexy business, but happy to be a beneficiary IRL since it bottomed at $2. Expecting them to continue this growth going forwards.
Est NPAT = $11.2m
EPS = 0.953
PE = Historic 9-12x depending where you are in the dividend cycle
Value = $9.5 to $12.5 range
Expecting it to reach $11.5 pre dividend payout but normalise back down to the $11 range.
I worked for Korvest in their EzyStrut division on Prospect Rd, Kilburn, here in Adelaide, for about 3 months between working for FH Faulding and Coke, so almost 20 years ago @SudMav - and you're right, far from a sexy business, and the pay was low, however they did have an enterprise agreement, which most companies tend to do, and by the sound of it they have agreed to give their workers a decent pay rise recently since they're calling out employee expenses as one reason for some margin compression, although you'd hope they could claw that back through price increases since they don't have a lot of competition in that segment as I understand it, and their cable trays are generally considered to be pretty good in terms of quality and durability, they're welded properly, mostly by robots, then they galvanise them all themselves.
Wait a sec, didn't I already share this with you, that I once worked for them...
Yep, I did - 5 months ago: https://strawman.com/forums/topic/9703
Ah well, interesting about the margin compression.