And we've returned to business as usual - $50k repurchased yesterday.

Agree with you here @lyndonator. Honestly bugs me how companies script ASX Announcements.

There's an entire paragraph on the key numbers (revenue and profit [before tax]) with the caveat of "before management incentives". You then need to get to the bottom of the page for them to give you the actual incentives - "to be in the range of $3.5 million to $3.9 million for the FY2024 year" against 2023's FY of $3 million.

Sure, key metrics trending in the right direction, but management incentives also growing at circa 20%.... must be nice.

Don't get me wrong, I am all for rewarding growth and key driver's of a company's financial performance - but there is a line right? Not saying we are at that line now, but does this continue to grow ~>20-25% YoY?

Keen to hear others' take.

Well according to the announcement ARR is at $62M. After the sell off current Market cap of $522M that's P/S at 8.4x and yeh I think some more growth ahead.

Think looks okay here now, not cheap, but okay - was getting a bit toppy closer to $3.

@lyndonator It is a pretty significant downgrade to the earnings guidance provided at the half year and you don't get a lot of wiggle room when your on a PE of 128.

They met revenue guidance ($113-114m) but missed EBITDA (18.7-19.3) by 10-15% and PBT ($14-14.5) by 20%. I

ts not clear to me if the $14-14.5m PBT is inclusive or exclusive of the management incentive figure of $3.5-3.9m. If its inclusive the miss is far more reasonable as suggested by @Seymourbutts, but its a bigger hit if its exclusive of it.

Agree though that broadly it is moving in the right direction the market just got ahead of itself. I think it is looking pretty interesting this morning. Meeting rev guidance but not EBITDA does imply that they costs have gone up somewhere along their chain though.

I agree this will set market expectations to more realistic level:

full thoughts published here: https://www.growthgauge.com.au/p/rpm-global-asx-rul-fy24-update

@Valueinvestor0909 Nice work. Clear, concise, to the point and ...quick off the mark.

Thanks for your insights.

Thanks All - I always get a few more things to consider from the Strawman team.

However, now it is back in my buy zone I think I'll pick up a few more shares

@Seymourbutts, the man problem I have with the incentives is that I have no idea what the hurdles are for management to achieve these bonuses. I am assuming it is linked to revenue growth, but i am not certain. I've looked through the annual report and their is no detail about them there as I think they are operating at a within company level rather than at thew board/senior exec level.

Including this year RUL will have paid out $10.5-$10.9m as incentive bonuses to staff over the last 3 years. So a pretty significant chunk of change for a growing company. It seems like the bonuses are a part of doing business for RUL so probably don't need to be itemised, just capture it in lower EBITDA as its really just paying staff more and reducing the operating margins of the business.

Overall I'm with you in seeing the benefits of incentivising an outcome so willing to let my confusion around it slide but I have no way to tell if it is actually increasing sales though or what their growth trajectory would look like if the incentives were lower.

This is probably the bigger concern for me is that management of RUL are a bit opaque in how they operate and its hard to know what their strategy is with regards to low investment back into product development/ R&D or the way they have continued the share buyback even when the SP was getting into overcooked levels.