ASX:WATLeisure
Waterco (ASX:WAT) Shares Face Valuation Doubts Despite Stronger Margins
Waterco went into this result with the stock up over the past quarter and trading on a P/E of 12.5x, which screens cheaper than both leisure peers and the broader Australian market. The headline from the fresh numbers is earnings power. Net profit margin sits at 6% and earnings over the past year are much stronger than a year ago.
The twist for investors is valuation tension. A discounted cash flow estimate of A$2.99 per share sits well below the A$5.50 close on 28 August, even as Waterco...