Company Report
Last edited 2 years ago
PerformanceCommunity EngagementCommunity Endorsement
ranked
#67
Performance (28m)
10.6% pa
Followed by
9
Straws
Sort by:
Recent
Content is delayed by one month. Upgrade your membership to unlock all content. Click for membership options.
#Bull Case
stale
Added 2 years ago

I think NCK is a great business - one of those founder-led businesses often talked about. Very high ROE which has been maintained over many years - has been above 40% since 2016. It's managed very well over many years - with good products and thick margins. They sell quality products and I like the deposit model, which reduces working cap requirements and increases cash flow. Debt is low and they own some of their properties, which does provide a great buffer in troubled times, which may be coming given the discretionary nature of the product. Having said the outlook is bleak, I took the opportunity yesterday to top up my IRL holding, not many times you can get a business like this on close to 8% yield (noting the forward outlook is unclear), longer term I think this will pay off for me.