SKL Skellerup Holdings

[Popeye]

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.

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?

[Left Field]

Looks like a cautious upgrade to me

https://www.nzx.com/announcements/461344

[Bev]

It is a relief after Trump's tariff scare.  Trading halt in place. 

[Bev]

Sorry, trading halt was in place.

[winner (n)]

Looks 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

[Mos]

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.

[seaweed]

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

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   

[Dolcile]

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. 

[Dolcile]

And looking forward to a really strong HY result this week. 

[Dolcile]

Great close 

[winner (n)]

Hope it's a case of buy the rumour and buy even more when facts are known

[Dolcile]

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.


 

Skellerup 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

[Mos]

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%.

[HAWKDOG]

you beauty!!

[Basil]

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.