| | | I think you made some telling observations regarding GRVY back in 2017 ....
My own interrogation of GRVY's latest TTM Financials are much in sync with what you put forward about the company --->
We see a good Gross Margin to start off with.
EBITDA Margin is a bit below target but still OK at about 14%. It's obviously the SG&A number which is on the high side and if that can be reduced it will help the margins that follow.
One of the Main Highlights as you've stated is the absence of DEBT. No Long Term Debt and very little Debt Expense reducing EBT ....ALWAYS a Positive.
That gives a very good Pretax/Capital Employed ratio of over 33% !! .... You don't often find that percentage ratio in a company !!
The company is paying its taxes, and it has an acceptable Net Margin of over 10%.
ROE is good and it's price appears in the "Buy" range.
I must say I have to smile when I read some of the slightly negative comments that came from some on this board about GRVY when one considers what calibre of stocks are promoted which, at times, show Bottom Line Losses. That results in a depressed stock price which is then translated into a "buying opportunity" because the share price is lower than normal, or "below book" !!
Here we have a company with fairly good financial fundamentals, making ongoing profits, which, in turn, is reflected in its share price which has been in a not unexpected Ongoing Uptrend.
And that Uptrend coincided with the improvement in GRVY's Bottom Line in and around 2016, and was evident in 2017 and has continued since then.
Amazing what on can derive from a company's Financials .....
Thanks for posting about GRVY ..... it looks like it has potential ..... I'll be looking to buy some of its shares in the near future ..... |
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