Saiton, I am not even looking at P/E yet for $PNV.
P/E is one useful metric once a company has a reasonable level of earnings. But $PNV is still at the profit/loss threshold. So, its essentially meaningless.
The reason for this is that in healthcare (pharma, and medical devices) rolling out globally, one key decision for approved products is the allocation of resources to sales and marketing. As DW has said for years, $PNV could be highly profitable off the back of ANZ and the US. But the strategy is to achieve a global rollout. So, they are essentially taking what I call "notional profits" from these core markets and using them to build out the sales and marketing footprint (both within US and ANZ, and more broadly).
The metrics I use to track $PNV are:
- % Revenue growth
- % Gross margin
- % Expense growth (and the allocation to sales and marketing, G&A and R&D)
- Capex - although its quite capex light, but they will have an increase here in FY25 and FY26 as they expand facilities to get $500m sales capacity.
Base on my model, I'll probably only start looking at P/E in about 3 years.
So far, I am giving DW good marks on capital allocation, although I'd like to see R&D spending increased.