Skellerup (SKL) Fundamentals

[Biscuit]

...... They used to be however a quite cyclical business, will be interesting to see, whether this is something which changed long term.
.....

That's my thought too. They certainly have hit their stride but I'd be a bit wary what happens to them in an economic pull back.

[winner69]

Yep, quite nice result and very healthy financial indicators. RoE of 20.5% ...........

Return on Invested Capital (which includes borrowing) was 18.3% - way above whatever cost of capital you want to use, 7% to 10%

True (and consistent) creator of economic wealth

Deserves to have a Market Value Added of $4.41 (Market Cap less Equity)

Not that many NZX companies performing like this

[Soolaimon]

Excellent result, again. One looks back at a considerable top up at 47cents to the shares that I have held for many years and the returns are considerable. Probably the best long term hold I have held. I remember Nuplex, another successful manufacturing company performing in a similar fashion back then and they were eventually taken over by a big international player. I just hope that does not happen here ??

[winner69]

Whilst there has been growth per se the majority of the added value has come from greater productivity (ie margin etc)

[Biscuit]

Excellent result, again. One looks back at a considerable top up at 47cents to the shares that I have held for many years and the returns are considerable. Probably the best long term hold I have held. I remember Nuplex, another successful manufacturing company performing in a similar fashion back then and they were eventually taken over by a big international player. I just hope that does not happen here ??

Nuplex came close to going belly up in the GFC though, as I recall.

[macduffy]

Nuplex came close to going belly up in the GFC though, as I recall.

Yes, as a result of a combination of USD borrowings and subsequent NZD weakness!

No relevance to SKL.

[nztx]

let's just follow the smart money .. bound to be opportunity to share a small bit of their pavlova ..

[Ggcc]

https://www.nzx.com/announcements/377599

They keep going full steam ahead

[nztx]

Not a lot to not like about SKL .. the quiet consistent performer, getting on with business
& doing it well through the thick & thin too

[Ggcc]

$9.5 million in turnover. Quite high even for this share