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NRW Holdings (NWH)

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NRW Holdings (NWH)

Hi James and Team, Are you able to shed some light on why the share price for NWH has dropped off to its current disappointing low. Their recent announcements are positive, some of their key metrics look good (ROE > 15, forward PE of 10, at current pricing offering a 4.5% dividend fully franked, reasonable debt levels, RSI of 30, etc.). The materials and infrastructure backdrop is good and strongly aligns with their core business. So what am I missing ? I’d appreciate your thoughts and comments. Thanks, Jan P

Answer

Hi Jan,

All the reasons you’ve mentioned are why MM continues to hold NWH in our Growth Portfolio, the market was clearly disappointed with its half year results delivered in February with the 44% lift in revenue not flowing down to strong profitability given pressure from wages,  but the share price fall does feel well overdone. At this stage we are hanging in there but are not considering adding to our position given our current weighting.

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NRW Holdings (NWH)
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