PTL.ASX - Pental Ltd

[SpecOps]

Pental is an Australian consumer goods company selling things like bleach and toilet roll with market shares ranging from 50-80% in Australia and NZ, so has some very strong brands. It was uncovered by OTC adventures and is a pretty good find.

 

I did my own blog post on it where I showed the historical revenues and earnings, pretty strong sales growth considering it sells for a P/E of about 8 at the moment. Profit margins haven't been too stable but increased management focus on them now.

 

http://investingsidekick.com/wp-content/uploads/2014/05/Pental-financials2.png

 

http://investingsidekick.com/pental-limited-asxptl/

[rukawa]

If it has strong brands and its a consumer goods company than why aren't its profit margins stable? I feel like the play here is that I am investing in a stable, profitable company which is what consumer goods with excellent brands is supposed to represent. But I don't see it in the financials.

 

I feel like PE of 8 isn't really cheap for this company.