Nice result for holders - Industrial Division's performance impressive in drive to improve margins.
https://www.nzx.com/announcements/397133
Highlights for the year ending 30 June 2022
• Strategy continuing to deliver substantial growth in earnings and returns to shareholders.
• Revenue of $316.8 million, up 13% on prior comparative period (pcp).
• Earnings before interest and tax (EBIT) of $66.8 million, up 18% on pcp.
o Industrial Division EBIT of $39.1 million, up 20% on pcp.
o Agri Division EBIT of $33.6 million, up 10% on pcp.
• Net profit after tax (NPAT) of $47.8 million, up 19% on pcp.
• Operating cash flow of $43.3 million, down 26% on pcp.
• Net debt of $25.2 million, an increase of $16.5 million on pcp.
• Final dividend of 13.0 cps (50% imputed) bringing the total
FY22 dividend to 20.5 cps (50% imputed) for the full year, up 21% on pcp.
Yep a tremendous result and a continuation of what's happened the last couple of years
For years the Skellerup share price languished in the 100-150 range - should always be worth more was the cry. In 2017 it became more popular and the share price managed to get to 200 odd in 2020.
All those years Skellerup wasn't really a dog (financially) - it was just they disappointed punters with lack of growth and things like that.
Skellerup has always had a pretty good ROE (like 14% to 16% through 2016 to 2020. More importantly they have for a long period of time covered their cost of capital - ie they have created economic value.
Since they really got things sorted big time over the last few years their ROE has improved to 23.5% this year and their ROIC (Return on Invested Capital) has improved nearly 20% (was 10%/11% 5 years ago)
Investors love a high ROIC company - like professional investment managers (not guru broker analyst types) often value a company on this basis - using a thing called Market Value Added (Difference between Market Cap and Equity) which essentially is the NPV of future excessive returns (where excessive returns are those in excess of its cost of capital)
I love chart below - it highlights how much Skellerup has been rewarded because of its growing ROIC.
Pretty incredible eh - like $1.08 of shareholder equity is now valued by the market at $5.82 - Market Value added of $4.74 (probably even more tomorrow)
00000skl.JPG
Great post Winner. Your chart say's it all.
SKL has realised that there are limited profits to be made by selling retail gumboots (and competing with mass production out of Asia,) but when they can create unique quality solutions for key industries ( eg Mining, dairy, hospitals etc etc) then SKL can make real progress and healthy margins.....
In their words;
"Skellerup's unwavering focus on working closely with key customers to provide engineered products used in a range of critic al applications people interface with every day. "Our products are critical to the supply of safe potable (drinkable) water; the production of milk and milk products; the performance of appliances in homes and workplaces; health and hygiene in hospitals, shops and homes; the safety and comfort of sporting and leisure equipment; and the integrity of roofing systems on homes and workplaces."
I also like that 85% of their Industrial Division's revenue comes from International markets....
"Our Industrial Division generates 85 per cent of its revenue from international markets. We work closely with customers to design and manufacture products that often combine multiple materials such as rubber, plastic and metals to perform in a wide range of critical and high-performance applications. In FY22 we increased sales of gaskets, seals and vacuum systems into potable water and wastewater applications (most notably in the USA) and increased sales of high-performance marine foam products (USA, NZ, Australia and Europe). We also had a ten-month contribution from Talbot Advanced Technologies (acquired on 31 August 2021)."
Onwards and upwards....
Quote from: winner (n) on Aug 18, 2022, 11:01 AMYep a tremendous result and a continuation of what's happened the last couple of years
For years the Skellerup share price languished in the 100-150 range - should always be worth more was the cry. In 2017 it became more popular and the share price managed to get to 200 odd in 2020.
All those years Skellerup wasn't really a dog (financially) - it was just they disappointed punters with lack of growth and things like that.
Skellerup has always had a pretty good ROE (like 14% to 16% through 2016 to 2020. More importantly they have for a long period of time covered their cost of capital - ie they have created economic value.
Since they really got things sorted big time over the last few years their ROE has improved to 23.5% this year and their ROIC (Return on Invested Capital) has improved nearly 20% (was 10%/11% 5 years ago)
Investors love a high ROIC company - like professional investment managers (not guru broker analyst types) often value a company on this basis - using a thing called Market Value Added (Difference between Market Cap and Equity) which essentially is the NPV of future excessive returns (where excessive returns are those in excess of its cost of capital)
I love chart below - it highlights how much Skellerup has been rewarded because of its growing ROIC.
Pretty incredible eh - like $1.08 of shareholder equity is now valued by the market at $5.82 - Market Value added of $4.74 (probably even more tomorrow)
00000skl.JPG
Nice post winner.
And in less tangible rerating theory they've also managed to shrink their beta. Better ROIC together w lower beta = Borat style "very nice"
SKL share price $5.90 puts it on a PE of 24 F22 earnings ..... or say 21 F23 eps ..... not really that high.
I reckon current price assumes about 5% pa growth forever ... not that demanding
Nice update.....
https://www.nzx.com/announcements/401169
"we expect FY23 NPAT to be in the range of $48 to $52 million, ahead of the record FY22 result of $47.8 million. Our strategy of working closely with customers to provide engineered products that assure performance and often meet demanding food or water regulations continues to generate sustainable earnings growth."
Yes leftie - pretty good
Even if its $48.0m its more than last years $47.8m so is going to be a RECORD profit
After 38% profit growth in F21 and 19% in F22 0% to 8% is a bit anemic though .... but better than going backwards
We probably need to take this as a sign that the outlook for many companies in F23 is really that brilliant ....and doing about the same as F22 is going to be a good result
Undersell expectations then over deliver.........always a good strategy IMO.
my buy order was part filled
picked a few up at todays low of $5.20 .
closed today at$5.59
muted celebrations tho' as when i say a "few" I mean just 7 :'(
1H FY23 Encouraging results for SKL holders.....even a hint of a divvy increase......previously announced full year 'record' NPAT expectations confirmed.
https://www.nzx.com/announcements/406764
Key points for the six months ending 31 December 2022
• Revenue of $165.5 million, up 10% on prior comparative period (pcp)
• Earnings before interest and tax (EBIT) of $33.5 million, up 3% on pcp
• Industrial Division EBIT of $21.4 million, up 14% on pcp
• Agri Division EBIT of $14.6 million, down 12% on pcp
• Corporate costs of $2.5 million, down 15% on pcp
• Net profit after tax (NPAT) of $23.0 million, down 1% on pcp
• Operating cash flow of $20.2 million, up 3% on pcp
• Net debt of $39.0 million, up $13.8 million on FY22 year-end
• Interim dividend of 8.0 cents per share (an increase of 0.5 cps), up 7% on pcp
• FY23 NPAT forecast unchanged in the range of $48 to $52 million.
Skellerup reaffirmed expectations for another record year with FY23 NPAT forecast to be in the range of $48 to $52 million. Mair said "Markets will remain challenging; however we expect earnings to be stronger in the second half of the year due to seasonal impacts and contribution from new products used in hygiene, potable water and flow control applications. These new products add to our strong foundation to deliver growth in the years ahead."
can we take from that at a glance although winnre() will confirm or deny that inflation has hit this NPAT?
havnt had time to investigate.
Percy sold this baby as have to admit we sold also but it was bought as a defensive shot and it turned out to be a market darling after being a very very boring stock...
it turned out to be anything but...
will it bounce back to over 6? boy what a stunner of a company..
Quote from: Waltzing on Feb 16, 2023, 09:53 AMcan we take from that at a glance although winnre() will confirm or deny that inflation has hit this NPAT?
......will it bounce back to over 6? boy what a stunner of a company..
On the other channel Snoopy compared SKL to SCT which is well worth a look.
One of his findings; A 136% growth rate at SKL over a five year period equates to an averaged annual growth rate of: 2.36^0.2 = 1.187 or 18.7% per year. However, Snoopy questioned SKL's ability to continue growth at this rate and favoured SCT for the future.
Market today seems not impressed and SP down around 1-2%.
growth may slow for sure...but the chart looks like it could consolidate then rebuild upwards...
Any news on the deal with FPH they were talking about last year?
They are going to have large demand on their products post north island cyclone clean up. They will need to rebuild fast and sku will be in a good position to reduce their stock holdings.
Been nothing from SKL since half year announcement so assume they still on track for a record profit in F23
Share price down 15% since half year and now about 30% down from its recent high.
Downtrend still intact ...wonder for how much longer as PE currently looking reasonable
Maybe as low as 4 bucks before full results announcement in August?
If I was them I'd find an excuse to come out and say things are still all hunky dory.
If they beat last years, that would be amazing! I'm anticipating a soft result. The sp has been trending down for a while now and the margin squeeze is very real at the moment. Wait n see I guess
Boring is good....... dividend/earnings/net profit ...all up 7%. Holders will be happy.
https://www.nzx.com/announcements/416484
Highlights for the year ending 30 June 2023
· Strategy continuing to deliver substantial growth in earnings and returns to shareholders.
· Revenue of $333.5 million, up 5% on the prior comparative period (pcp).
· Earnings before interest and tax (EBIT) of $71.7 million, up 7% on the pcp.
o Industrial Division's EBIT of $42.9 million, up 10% on the pcp.
o Agri Division's EBIT of $34.0 million, up 1% on the pcp.
· Net profit after tax (NPAT) of $50.9 million, up 7% on the pcp.
· Operating cash flow of $54.1 million, up 25% on the pcp.
· Net debt of $26.8 million, an increase of $1.6 million on the pcp.
· Final dividend of 14.0 cents per share (cps) (50% imputed) bringing the total FY23 dividend to 22.0 cps (50% imputed) for the full year, up 7% on the pcp.
"Our Industrial Division generates 85 per cent of its revenue from international markets. FY23 sales revenue growth of five per cent was slower than in recent years. Strong revenue growth was realised from sales of vacuum systems for wastewater applications (most notably in the USA), sales of high-performance marine foam products (into the USA, NZ and Australia) and roof-flashing products for solar energy installations (in the UK). This growth was partially offset by lower sales for potable water and appliance applications as customers reduced inventories; this reflected both lower demand and an easing of supply chain pressures such as raw material shortages and freight congestion prevalent during the COVID-19 pandemic of the preceding two years. The FY23 result again demonstrated that the broad range of applications we serve is a feature and strength of our Industrial Division. This enables us to leverage our expertise and not be exposed to changes in demand from any one sector."
Agri Division's EBIT was $34.0 million, up one per cent on the pcp. Revenue was $117.0 million, up six per cent on the pcp. Mair said increased sales of footwear were key to another record result in FY23.
"Our Agri Division remains a world leader in the design and manufacture of essential consumables for the global dairy industry and the design and manufacture of rubber footwear for farming and specialty applications including electricity, fire and forestry. Footwear was a standout during FY23 as increased sales in NZ (hardware channels and urban markets) and the USA (electricity applications) delivered earnings growth. Sales volumes of dairy consumables were down as customers reduced inventories due to lower demand and an easing of freight congestion prevalent during the COVID-19 pandemic. Sales price adjustments in the second half of the year lagged the impact of raw material cost increases incurred in the first half; however, productivity gains helped offset the impact of lower production volumes, higher raw material prices and freight costs."
Happy long term holder. Order in for more at these prices.
Got them. Thanks.
It came back down after that sharp stock price increase last week after earnings for those that feel they may have missed out on 'lower prices'.
Good article by Jenny Ruth...."SKL one of the most consistent earnings growers on NZX 50"
https://justthebusinessjennyruth.substack.com/p/skellerup-one-of-the-strongest-and
"While sales grew at 7% a year through the first decade and net profit at 4.2% a year, earnings per share had fallen 2.4% a year.
In the second decade, sales grew at a slower 5.8% annual pace but profits rose 10.4% a year and per-share earnings grew at 10.2%."
Maybe one day the SP will recognise this performance.
More likely the market already does reflect those earnings and earnings growth history fairly. PE of 18 seems about right in the circumstances.
Notable the NZX is down about 11% in the last 3 months but SKL has held up very well in a market where the tide is going out at a very fast rate of knots.
Quick back of the envelope valuation for me would be no growth PE of 7.5 for where the 10 year Govt stock rate is now + 1G where g = average growth rate.
What do you know, that gives a PE of just on 18.
Blue Chip... and MR P sold out... we did too ,,, big mistake after the lovely profit after the Great Recession....
still worth keeping the NZX open... just
Last purchase in 2023 for me was dipping my toe in the water with Skellerup today. Attracted to the high ROE, demonstrated growth history and prospects, international options, and the lucid commentary from the company on how they create value. Not cheap, but has the hallmarks of a long term high ROE compounder. Will look to add on weakness.
FB been buying SKL
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SKL/424654/410820.pdf
Quote from: Waltzing on Jan 11, 2024, 04:23 PMDid they also hold PEB.... i know a law firm that held PEB a few years ago in a trust fund....
There is a private investor on this forum who has out performed the instos this year and i wonder if that investor would buy this....
its a long term hold one imagines ... 10 year?
Mmmmm excuse me but.....What's the relevance of PEB? and who cares?
I also know an investor who has outperformed insto's and NZX and owns SKL. The same investor likes to balance his portfolio with predominantly 'safe' dividend investments with other more risky 'small cap' investments.
Seems it's all about perceived risks and perceived rewards, but then again I'm struggling to understand the point of your post.
Another consistent and solid result from Skellerup
Mair stepping down as CEO though but I'm sure he's taught his successor the tricks of the trade
http://nzx-prod-s7fsd7f98s.s3-website-ap-southeast-2.amazonaws.com/attachments/SKL/426206/412572.pdf
I would rate it as a minor downgrade...... SKL being cautious.
Divvy looks safe for the moment..... even a slight increase. Great to see their Industrial Division doing so well. Increase in operating cash flow and reduction in debt bode well for better times.
• Revenue of $157.5 million, down 5% on prior comparative period (pcp)
• Earnings before interest and tax (EBIT) of $31.6 million, down 6% on pcp
o Industrial Division EBIT of $22.9 million, a record result up 7% on pcp
o Agri Division EBIT of $11.9 million, down 19% on pcp
o Corporate costs of $3.1 million, up $0.6 million on pcp
• Net profit after tax (NPAT) of $21.6 million, down 6% on pcp
• Operating cash flow of $36.5 million, a record result up 81% on pcp
• Net debt of $26.4 million, down $12.6 million on the prior half year
• Interim dividend of 8.5 cents per share (an increase of 0.5 cps), up 6% on pcp
• FY24 NPAT expected to be similar to the prior year record result.
I like SKL being cautious.
Yep, minor downgrade. But look at other metrics like cashflow and debt and u can tell it's a bloody well run company that's all over it. Happy holder
SKL feeling the love at the moment.....
Robust result they say..... clearly effected by rural downturn but industrial division performing v well.... nice divvie..
Holders will be happy.
https://www.nzx.com/announcements/436168
Highlights for the year ending 30 June 2024
- Revenue of $330.6 million, down 1% on the prior comparative period (pcp)
- EBIT of $72.7 million, a record result, up 1% on the pcp
o Industrial Division's EBIT of $46.9 million, a record result, up 9% on the pcp
o Agri Division's EBIT of $30.7 million, down 10% on the pcp
- Underlying net profit after tax (NPAT) of $50.0 million, down 2% on the pcp
- NPAT of $46.9 million, after deducting a non-recurring, non-cash tax charge required for the change in legislation in New Zealand to remove tax depreciation deductions on buildings
- Operating cash flow of $70.8 million, a record result, up 31% on the pcp
- Net debt of $15.4 million, down 43% on the pcp
- Final dividend of 15.5 cents per share (cps) (50% imputed), bringing the total FY24 dividend to 24.0 cps (50% imputed) for the full year, up 9% on the pcp
Given the downturn in rural spend, that is pretty impressive when compared to PGW's announcement.
Quote from: Ferg on Aug 15, 2024, 08:44 AMGiven the downturn in rural spend, that is pretty impressive when compared to PGW's announcement.
Even higher than FPH
One NZ company that consistently achieves great returns on invested capital .....about 18%
Even higher than FPH
Have a look at their presentation. Well set out and very informative graphs.
I am pleased at the way gross profit margins have been steadily increasing.
Record result (up 11% on pcp).... in tough times.... good for holders....increased divvy.
https://www.nzx.com/announcements/446611
Key points for the six months ending 31 December 2024
• Revenue of $165.3 million, up 5% on the pcp
• Earnings before interest and tax (EBIT) of $35.0 million, a record result and up 11% on the pcp
o Industrial Division EBIT of $22.4 million, down 2% on the pcp
o Agri Division EBIT of $15.5 million, up 31% on the pcp
o Corporate costs of $2.9 million, down 7% on the pcp
• Net profit after tax (NPAT) of $24.2 million, a record result and up 12% on the pcp
• Operating cash flow of $32.2 million, down $4.3 million on the pcp
• Net debt of $20.4 million, a $6.0 million reduction on the prior half year
• Interim dividend of 9.0 cents per share (an increase of 0.5 cps), up 6% on the pcp
Great half year result and more to come I reckon
BusinessDesk had a article with a great headline
'It's not a pipe dream': Skellerup CEO Graham Leaming reveals his big goal
Extract -- Leaming, who stepped into the chief executive position in March from leading the company's financial operations, said it was not a pipe dream for Skellerup to double the size of its business. The goal could be achieved through organic growth, he said.
Skellerup have achieved stellar returns over a long period and currently its ROIC is over 20% -- that's way above its cost of capital. The excessive returns commonly called Economic Value Added (EVA) and a real measure of wealth creation.
Equity is $1.16 per share so with a share price of $5.25 the market has ascribed $4.09 per share to these excessive profits. The $4.09 is essentially the present value of future excessive profits.
The value of future excessive returns depends on what cost of capital and expected growth rates but I reckon that $4.09 should be over $5,00 -- a share price well over $6.00 in other words
Plenty more upside here
PS - Learner said acquisitions weren't off the agenda either, balance sheet to do one
Quote from: winner (n) on Feb 15, 2025, 11:07 AMGreat half year result and more to come I reckon
BusinessDesk had a article with a great headline
'It's not a pipe dream': Skellerup CEO Graham Leaming reveals his big goal
Extract -- Leaming, who stepped into the chief executive position in March from leading the company's financial operations, said it was not a pipe dream for Skellerup to double the size of its business. The goal could be achieved through organic growth, he said.
Skellerup have achieved stellar returns over a long period and currently its ROIC is over 20% -- that's way above its cost of capital. The excessive returns commonly called Economic Value Added (EVA) and a real measure of wealth creation.
Equity is $1.16 per share so with a share price of $5.25 the market has ascribed $4.09 per share to these excessive profits. The $4.09 is essentially the present value of future excessive profits.
The value of future excessive returns depends on what cost of capital and expected growth rates but I reckon that $4.09 should be over $5,00 -- a share price well over $6.00 in other words
Plenty more upside here
PS - Learner said acquisitions weren't off the agenda either, balance sheet to do one
Agree - doubling the size by organic growth is not a pipedream (hey, they did that several times before, didn't they?) - and they have a prominent place in my "essential business" portfolio. Gives me exposure to agriculture, industrial consumables as well as to the building industry. In my view in all divisions still plenty of runway.
Obviously - will need to see, whether the success streak continues with David Mair now fishing in a different pond, but so far it looks promising.
Another strong result from this high ROE growth company. Navigating their way through the challenges well and consistently building a high margin global business with minimal debt.
Skellerup achieves another record result
21/08/2025, 08:30 NZST, FLLYR
Broad-based revenue growth underpinned a record year for Skellerup, generating earnings before interest and tax (EBIT) of $78.0 million, a seven per cent increase over the prior year.
Highlights for the year ending 30 June 2025
· Revenue of $353.5 million, up 7% on the prior comparative period (pcp)
· EBIT of $78.0 million – a record result, up 7% on the pcp
o Industrial Division's EBIT of $48.4 million – a record result, up 3% on the pcp
o Agri Division's EBIT of $35.3 million – a record result, up 15% on the pcp
· Net profit after tax (NPAT) of $54.5 million – a record result, up 9% on the pcp
· Operating cash flow of $66.5 million, down 6% on the pcp due to working capital investment
· Net debt of $12.4 million, down 19% on the pcp
· Final dividend of 16.5 cents per share (cps) (50% imputed), bringing the total FY25 dividend to 25.5 cps (50% imputed) for the full year, up 6% on the pcp
https://www.nzx.com/announcements/457154 (https://www.nzx.com/announcements/457154)
Nice to SKL up 6% today! Have this one in my Sharesies kiwisaver.
Quality company, quality management, quality products.
Consistent sales and profit growth / ROE and ROIC over 20% / low debt etc etc
No reason why it shouldn't be trading over $6.00
At $6.00;would only on a trailing PE of 20 .....deserves more.
Love ambitious leaders " 'It's not a pipe dream': Skellerup CEO Graham Leaming reveals his big goal"
I reckon they can do it .....on organic growth alone
If at right price acquistions on the agenda as well
Quote from: winner (n) on Aug 21, 2025, 03:08 PMQuality company, quality management, quality products.
Consistent sales and profit growth / ROE and ROIC over 20% / low debt etc etc
No reason why it shouldn't be trading over $7.00
At $7.00 would only on a trailing PE of 18 ...deserves more.
Like the positivity Winner but am struggling to follow the maths. At $5.01 x 196.07 m shares market cap of $982.3 m equates to trailing PE of 18 based on NPAT of $54.5 m. Are you advocating for a trailing PE of 25 in your $7.00 handle comment?
Quote from: Mos on Aug 21, 2025, 05:00 PMLike the positivity Winner but am struggling to follow the maths. At $5.01 x 196.07 m shares market cap of $982.3 m equates to trailing PE of 18 based on NPAT of $54.5 m. Are you advocating for a trailing PE of 25 in your $7.00 handle comment?
My bad ...used EBIT
How about $6 plus medium term ....PE about 20
Quote from: winner (n) on Aug 21, 2025, 05:51 PMMy bad ...used EBIT
How about $6 plus medium term ....PE about 20
I am with you.
Quote from: winner (n) on Aug 21, 2025, 03:08 PMQuality company, quality management, quality products.
Consistent sales and profit growth / ROE and ROIC over 20% / low debt etc etc
No reason why it shouldn't be trading over $6.00
At $6.00;would only on a trailing PE of 20 .....deserves more.
Your first sentence sums up why I invested in these guys (they dont seem prone to own goals and ride out industry cycles well).
Are they enough of a growth company for a P/E of 20 though? They look more like a steady grower to me. Even 18 seems a bit on the high side, I would be happier with 8-10 (through doubling of earnings as opposed to halving of SP!)
Maybe the different perspective of a holder versus a trader?
Looks like a cautious upgrade to me
https://www.nzx.com/announcements/461344
It is a relief after Trump's tariff scare. Trading halt in place.
Sorry, trading halt was in place.
Quote from: Left Field on Oct 23, 2025, 01:58 PMLooks like a cautious upgrade to me
https://www.nzx.com/announcements/461344
NPAT $60m first guess ...probably end up about $65m
That's pretty good growth v F25's $54m
Share price $6 sometime in next year
Solid update - 10% Q1 earnings growth in the new high tariff market. Consistent with the 10% earnings CAGR over the past 6 years. Steady grower at high ROIC - a lot to like.
Quote from: winner (n) on Oct 23, 2025, 02:32 PMNPAT $60m first guess ...probably end up about $65m
That's pretty good growth v F25's $54m
Share price $6 sometime in next year
There is also another company starting with S, with good looking numbers, that I have been buying into recently......which has EPS 67.58, PE 6.95, NTA 6.44 and has paid 20c div with a special div of 10c due in December. It wouldn't surprise me if there sp hit $6 in the near future. sw reporting from Lake Big Bear time 7.30am Thursday 23rd
I've been accumulating SKL over the last week. It looks to be a very well run business that is gaining operating leverage as it grows. The balance sheet is pristine and its capex requirements lwo, which is enabling it to generate significant fcf.
And looking forward to a really strong HY result this week.
Great close :)
Hope it's a case of buy the rumour and buy even more when facts are known
Outstanding result.
This is a cash generating machine.
Profit and cash flow growing 20% and faster than revenue (i.e. operating leverage).
Interim dividend up 11%.
Guidance increased to $57-62m for the FY.
QuoteSkellerup announced unaudited net profit after tax (NPAT) of $28.9 million for the six months ended 31 December 2025 – a record result and an increase of 20% on the prior comparative period (pcp). Skellerup also increased NPAT guidance for FY26 to be in the range of $57 to $62 million.
Key points for the six months ending 31 December 2025
• Revenue of $183.5 million, up 11% on the pcp
• Earnings before interest and tax (EBIT) of $40.6 million, a record result and up 16% on the pcp
o Industrial Division EBIT of $25.1 million, up 12% on the pcp
o Agri Division EBIT of $18.5 million, up 20% on the pcp
o Corporate costs of $3.1 million, up 7% on the pcp
• Net profit after tax (NPAT) of $28.9 million, a record result and up 20% on the pcp
• Operating cash flow of $38.8 million, up 20% on the pcp
• Net debt of $17.5 million, a $2.9 million reduction on the prior half year
• Interim dividend of 10.0 cents per share (an increase of 1.0 cps), up 11% on the pcp
• FY26 NPAT guidance increased to be in the range of $57 to $62 million
Outstanding as you say Dolcile. Great work by the SKL team in a volatile environment.
This type of capital light high ROIC compounder winning in global markets and generating a strong dividend yield is a rare beast on NZX.
Looks like plenty of room for further full year upgrades with H1 NPAT up 20% and the mid point of the full year guidance range up 9%.
you beauty!!
Just a quick look at the EPS CAGR.
EPS in 2021 was 20.6 cps. Average analyst forecast for FY28 is 35.77 cps gives a 7 year combined historical and forecast CAGR of 8.2%.
Forward FY26 PE of 18.7 seems fair and reasonable in relation to the growth rate.
Only 2 analysts cover it and their average price target is $5.80 which seems sensible to me.
Looks like a pretty decent company to me trading around fair value. Long term holders should do well.
Forbar had SKL at $6.20 prior the earnings forecast upgrade. Craigs undercooked their estimate.
If SKL reports $60m NPAT (which is looking easily achievable) for FY26 the 10 year cagr is 11.3%
Quote from: Dolcile on Feb 12, 2026, 10:23 AMForbar had SKL at $6.20 prior the earnings forecast upgrade. Craigs undercooked their estimate.
If SKL reports $60m NPAT (which is looking easily achievable) for FY26 the 10 year cagr is 11.3%
listening to conference call - clear (to me) that guidance is undercooked / well conservative.
Quote from: Dolcile on Feb 12, 2026, 10:23 AMForbar had SKL at $6.20 prior the earnings forecast upgrade. Craigs undercooked their estimate.
If SKL reports $60m NPAT (which is looking easily achievable) for FY26 the 10 year cagr is 11.3%
That's impressive.
Quote from: Fiordland Moose on Feb 12, 2026, 10:35 AMlistening to conference call - clear (to me) that guidance is undercooked / well conservative.
Great to hear - thank you!
Forbar have increased their price target to $6.60 (from $6.20).
PE ratios are the cheats way of doing DCF valuations.
Better way to value a company is to consider how much economic value they add -- EVA for short
Skellerup adds a lot of economic value. Its Return on Invested Capital is 22% (Invested Capital is Equity + Debt).
That 22% is extremely good and deserves to be reflected in the Market Value of SKL. Market Value essentially is Equity + NPV of future EVA
Skellerup currently generating about $36m of economic profit (EVA). I assess the NPV of EVA into the future as $890M.
Add the Equity of $240m you get a Market Value of $1.14 billion or $5.82 per share
So it seems that it is currently 'fairly valued'
Winner, what is the relevance of the book value of equity? I don't understand what this net book value has to tell us about current fair value.
Interestingly Forbar has the DCf valn at $6.7 using a 9% wacc. This is higher than the $5.9 derived by their peer multiples.
Quote from: Dolcile on Feb 12, 2026, 10:23 AMForbar had SKL at $6.20 prior the earnings forecast upgrade. Craigs undercooked their estimate.
If SKL reports $60m NPAT (which is looking easily achievable) for FY26 the 10 year cagr is 11.3%
If they make Forbar's revised target of 31.9 EPS for FY26 that's a backward looking 10 year CAGR of 11.5%.
If they make average broker forecast for FY28 of 37.6 cps using FY18's 14.15 cps earnings as the starting point that gives them a decade long combined 7 year historical and 3 year forecast CAGR of 10.6% Market a forward looking beast so for my purposes I'll just take the arithmetic average and say CAGR is 11%. Plugging that into my GARP value screening formula that suggests the stock is very good value up to a forward PE of 19.5 (PE 8.5 no growth + 11 extra PE for the 11% CAGR)
~ 8 months of FY26 almost done and dusted and its always important to look ahead. Average next years (FY27) PE of Craigs and Forbar is 16.6 so this screens well inside my GARP screener value finding formula and suggests this is a very good example of a very well proven GARP stock so I dipped a paw in the water and bought a few yesterday. Forbar forecasting gross yield of 6.6% for FY27 and 7.4% for FY28 so you're being paid quite well while you wait to enjoy the growth in the years ahead. Looks like a very sound long term hold to me. I appreciate you and others highlighting the opportunity. Better to arrive late to the party than not at all ;)
Quote from: Basil on Feb 14, 2026, 03:54 PMIf they make Forbar's revised target of 31.9 EPS for FY26 that's a backward looking 10 year CAGR of 11.5%.
If they make average broker forecast for FY28 of 37.6 cps using FY18's 14.15 cps earnings as the starting point that gives them a decade long combined 7 year historical and 3 year forecast CAGR of 10.6% Market a forward looking beast so for my purposes I'll just take the arithmetic average and say CAGR is 11%. Plugging that into my GARP value screening formula that suggests the stock is very good value up to a forward PE of 19.5 (PE 8.5 no growth + 11 extra PE for the 11% CAGR)
~ 8 months of FY26 almost done and dusted and its always important to look ahead. Average next years (FY27) PE of Craigs and Forbar is 16.6 so this screens well inside my GARP screener value finding formula and suggests this is a very good example of a very well proven GARP stock so I dipped a paw in the water and bought a few yesterday. Forbar forecasting gross yield of 6.6% for FY27 and 7.4% for FY28 so you're being paid quite well while you wait to enjoy the growth in the years ahead. Looks like a very sound long term hold to me. I appreciate you and others highlighting the opportunity. Better to arrive late to the party than not at all ;)
Wellcome to the party Basil, the drinks here get better in quality and quantity year by year. I have been enjoying them for a long time. Cheers.
Great summary Basil. This business prints cash. But shhh stay quiet so we can buy more on the cheap.
Yes docile they are cash machine and most of FCF comes back to shareholders every year
Just to remind all here's a multi year summary of financials -
Screenshot 2026-02-15 085822.png
One good thing is that NPAT as % Sales is steadily increasing and that ROE is still over 20%
If Ferg put together one of his famous charts I reckon it would look pretty healthy
Maybe Chair Strowger just trying to curb the current market excitment towards Skellerup .... shareholders should not expect record results to continue ad infinitum
Seems a strange to say. Why not we will just continue to deliver good results?
Yeah that comment struck me as a bit strange.
SKL is one of the very few nzx listed businesses that has some things I really like.
1. History of eps and dps growth
2. High profit to cash conversion
3. Healthy ROIC
4. Focus on their niche
5. Large addressable market
6. Low debt / pristine balance sheet
7. Profit growing faster than revenue
LOL, noticed sp went up 50c a couple of days before results day after a very slight 3 months down trend. Lucky buyer at the right time ;)
After reading a forbar note and doing my own research I started buying on the 5th Feb and finished early on the morning of the 9th. All at $5.20.
I was pleasantly surprised to see the share price move up quickly after and the HY report better than expected.
NPAT guidance for FY26 to be in the range of $57 to $62 million.
Rolling Annual NPAT (H225 + H126) is $60.3m
Surely they not saying 'we're going backwards in H226' or 'we will grow a little bit in H226'
Forbar have F26 est at $62.6m. That seems jsut as conservative as Skellerups guess
I say Full year going to be $65m to $69m ......mid-point $67.0m - EPS 34.1 cents
Modelled SKL for many years and my estimates have been pretty good
An interesting exercise so thanks for sharing that.....I am curious how you got from $36m to $890m. Is that NPV based on EVA growing in perpetuity, or something else? What were your assumptions?
Cheers
Quote from: winner (n) on Feb 14, 2026, 11:33 AMPE ratios are the cheats way of doing DCF valuations.
Better way to value a company is to consider how much economic value they add -- EVA for short
Skellerup adds a lot of economic value. Its Return on Invested Capital is 22% (Invested Capital is Equity + Debt).
That 22% is extremely good and deserves to be reflected in the Market Value of SKL. Market Value essentially is Equity + NPV of future EVA
Skellerup currently generating about $36m of economic profit (EVA). I assess the NPV of EVA into the future as $890M.
Add the Equity of $240m you get a Market Value of $1.14 billion or $5.82 per share
So it seems that it is currently 'fairly valued'
Quote from: winner (n) on Feb 15, 2026, 09:06 AMIf Ferg put together one of his famous charts I reckon it would look pretty healthy
SKL is not a share I currently track. Maybe I will add it to the list......
Quote from: Ferg on Feb 15, 2026, 09:43 PM....................
SKL is not a share I currently track. Maybe I will add it to the list......
I have to say that on one of the international stock picker tracker websites SKL has featured for a few years as a value BUY, suspect it will show up well to your investment criteria Ferg on your deeper analysis. Seems to be one that hasn't really re-rated to my eyes, not a perceived sexy stock to hold perhaps??.
Quote from: Dolcile on Feb 15, 2026, 10:02 AMYeah that comment struck me as a bit strange.
SKL is one of the very few nzx listed businesses that has some things I really like.
1. History of eps and dps growth
2. High profit to cash conversion
3. Healthy ROIC
4. Focus on their niche
5. Large addressable market
6. Low debt / pristine balance sheet
7. Profit growing faster than revenue
Excellent synopsis, thank you.
Very few companies fit comfortably inside my GARP value screening formula like SKL does.
Noting also for dividend hounds the decent yield and 10 year DPS CAGR is 12.4%.
i remember percy dumping it and we did also.. not for the same reason.. it had topped out but once again missed it recent low...
at about the same time inflation OCR rate hikes went up... OH dear...
but it could well be a good long term hold.. and still a defensive BUY...
Quote from: Ferg on Feb 15, 2026, 09:43 PMAn interesting exercise so thanks for sharing that.....I am curious how you got from $36m to $890m. Is that NPV based on EVA growing in perpetuity, or something else? What were your assumptions?
Cheers
SKL is not a share I currently track. Maybe I will add it to the list......
EVA growing at 10% pa for next 2 years then 8% the 7% the 5% with Twerminal Rate of 3%
Thanks. Was that an 8% discount rate?
Good to see the decline in SKL shareprice from 590 to 520 turn today and back to 544
Hopefully that decline was just bit of a blip and we'll see share price heading over 6 bucks before the next profit upgrade
Dollar back into the 0.57 range won't be hurting them at all.....
Some nice upward pressure today :-)