They used to generate ROEs in the 15% range, but that came down recently. So did the share price …
This is not investment advice. Please read the disclaimer. I might own discussed stock(s) currently or at a later time. I might transact in any securities at any time.
The share price looks enticing, but gross margins are problematic as are average price per unit sold. Profitability is currently pressured due to high shipping costs and raw materials. Greatview’s margins never got pressured like this. If profitability recovers this might be interesting …
- Capex/depreciation ratio is <1 since 2018, and is <.7 for 2020 and 2021.
- Unit prices are falling since 2016, and as a result gross profit per pack is shrinking and fell off a cliff in 2021 without recovering in H1’22.
- Reports include a bunch of buzzwords. It did not help profitability.
- Look for increases in price/unit and GM recovery
Some sizeable insider buys since mid 2021.
- I think i first stumbled over Greatview at the great globalstockpicking blog. There you can read much more.
Just by chance, his blog also features a picture of the greatest skyline there is … sweet memories 🙂