SKB Shutters – will there be a multiple expansion?

If you stand back and look at SKB performance over the past decade, you can see that its performance post-2021 is very different from that pre-2021. This is well illustrated by the return chart.

Is this a flesh in the pan or a sustainable change? Over the past few years, the company had introduced new products. It cited the the mandatory deployment of Insulated Fire Shutters for compartment walls as one driver for this change driving growth.

There are also operating and efficiency improvements. Its improvements is reflected in its position as a company with one of the better fundamentals on the Fundamental Mapper.

https://i.postimg.cc/tgGHPtqv/FM-SKB.png

The market price of SKB has been up-trending since Q1 2024. Based on a historical trend projection by the Fundamental Mapper algorithm, it is a borderline investment risk.

But if you think that the performance trend will continue, the future will be much better than the past. In this case, expect growth in earnings. Give market behavior, better earnings can lead to “multiple expansion”. When this happens, the stock today will look cheap. Is this what speculators are looking at?