02-17-2019, 08:46 AM
(02-17-2019, 12:19 AM)EricL Wrote: Looks like an interesting company, but I agree that its a bit expensive right now. Dividend growth rate isn't all that impressive either at just 5.3% annualized over the last two decades.
Any idea why analysts are showing such big EPS growth in 2020 and 2021? FAST Graph is showing 33% and 30% growth the next two years.
No I really don't other than 2019 is predicted to be down from 2018. That doesn't explain 2021 growth projections that high. I'll do some more research. I;ve read they are expecting reduced raw materials prices but their core business does not grow like that to my knowledge. CFRA analyst report predicts 14% next three years. If true it would still take a year of two to grow into their PE for a fair valuation. They seem to command a premium valuation. They compete in the chemicals and coatings sector with the big boys, Dow and PPG, but they don't. They have a bit of a moat in their niche brands that are present in about every big box retailer I am aware of. And the local hardware stores as well. I think they are attractive at some point, but a minimum of $5 more needs to come off that share price. On a side note I'm surprised nobody acquired them though the years when their market cap was occasionally low.