Skellerup (SKL) Fundamentals

[Biscuit]

Mid point of outlook for FY2021 is a 10% profit rise to $32.5m. This is very welcome but with the share price at $3.14 (up 6%), we are still looking at a PE of near to 30. Traditionally this company has traded on a PE of 15. So I think the 'party' has already happened.

SNOOPY

Really, that doesn't sound right? I thought the PE was around 20? Halving the share price would bring me back to where I started 8 years ago and earnings have gone up since then.

[Snoopy]

Really, that doesn't sound right? I thought the PE was around 20? Halving the share price would bring me back to where I started 8 years ago and earnings have gone up since then.

That will teach me to rely on memory..... You are quite right Biscuit. Looking back in this thread to my post 857 I have been using a normalised earnings for FY2020 of $28.969m. So $32.5m is actually a 12% year on year profit rise from 14.9cps to 16.7cps.

At $3.17 we are on a projected PE of $3.17/ 0.167 = 19.

That is still high given an historical context five year average PE for Skellerup of 15.6. But not outrageously high given where the market is today. I am happy to sit on my holdings at this price for what is now my largest NZX investment.

SNOOPY

[winner69]

Really, that doesn't sound right? I thought the PE was around 20? Halving the share price would bring me back to where I started 8 years ago and earnings have gone up since then.

I reckon at $32.5m NPAT the PE is 19.1

[macduffy]

I reckon at $32.5m NPAT the PE is 19.1

Which sounds about right for a company earning increasing profits - in today's market.

[Bjauck]

That is still high given an historical context five year average PE for Skellerup of 15.6. But not outrageously high given where the market is today. I am happy to sit on my holdings at this price for what is now my largest NZX investment.

SNOOPY

SKL has now become one of my largest holdings too. Held since 2015, it has had a less dynamic (roller coaster) performance compared with some.

The whole NZ market seems to have received a (placebo) Covid inoculation. I don’t know how long it will last.

[Soolaimon]

Not my largest investment on nzx but it is probably the most lucrative and consistant performer in my portfolio. I bought my first shares in this company many years and name changes ago. A great example of bottom drawing..

[bull....]

havnt posted on this for a while either but it is going nicely , rsi on weekly monthly just entering over brought territory but when a trend is in place this can remain like this for a while

[Ggcc]

Nicely above $3.35 and it keeps on rising. One of my best holds so far. Although I can’t see it going too much higher unless we get a massive profit upgrade, or another company they intend to take over.

[RTM]

Nicely above $3.35 and it keeps on rising. One of my best holds so far. Although I can’t see it going too much higher unless we get a massive profit upgrade, or another company they intend to take over.

Yes....pleased I topped up back in April.....more than doubled my holding.
A little bit surprised, I thought the strength of our dollar might hold them back a bit.

[Ggcc]

Looking good at $3.60. One of my top picks for 2021. But how high can it actually grow?