ASX:KSCLogistics
K&S (ASX:KSC) Shares Confront Margin Squeeze And Rich Earnings Multiple
K&S stock closed at A$3.04 after the market had a day to chew over the fresh full year numbers. The short term share price print looks steady, yet the story behind the result is a margin squeeze that is hard to ignore. Net profit margin over the past year has slipped to 3.1% while earnings no longer track the company’s earlier five year growth pace.
At the same time, K&S still trades on a P/E of 18.3x, above both global logistics peers and a discounted cash flow estimate of A$2.33. That gap...