This is a bold set of assumptions from @wtsimis and I'd like to suggest a contrary position.

It's never smooth sailing. Something will go wrong and put a dent in profit, even if revenue keeps increasing. I've held so many companies that look great but year-after-year there is some extraordinary item that kills the NPAT and/or cash flow. This is more likely with a company that has turned around quickly or been through hard times.

In SGI's recent past, margins were low and cash was tight, so there are likely some pent-up demands for expenditure and/or accounting adjustments. For example:

• profit was inflated by not writing off or writing down stock. Suddenly a whole lot of old stock gets written off
• Computer systems haven't had budget and are creaking with the increased load / complexity. Then an expensive systems upgrade is announced
• Leases roll-over at much higher rates. Or new executive positions are created, increasing overheads.
• Management gives themselves a pat on the back and a big bonus for doing so well - to the detriment of shareholders
• Some legal or tax concern comes to light and puts a hole in the financials
• Goodwill of past acquisitions gets a write down (this one is not cash and can be added back)
• A new ill-consider acquisition gets announced with a capital raise causing dilution and poor returns on capital

So, while @Strawman and others correctly called out the massive up-side from increasing margins, there are a lot of black (or grey) swans that could appear before the next re-rate.

Note: I continue to hold IRL because, on balance, I'm positive. But valuing for rapid revenue growth AND significant margin improvement seems naive.