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    Outlook for QUBE

    Hello MM and welcome back for 2025! Qube Holdings (QUB) continues to increase in share price and now has a PE ratio of 32. Does this stock represent good value and why is it trading on such a high PE multiple? Can the stock keep going at this rate of appreciation? Thanks, Rob

    Answer

    Hi Rob,

    QUB pushed to fresh all-time highs this week as the “strong keep getting stronger”. The logistics companies Est P/E for 2025 is 26.4x which is actually on the cheap side compared to the last 5-years, and for a business supported by solid financial results, strategic expansion, and positive market sentiment it looks ok to MM.

    • Strong financial performance: In the fiscal year ending June 30, 2024, Qube reported a +17.2% increase in revenue, reaching $3.5 billion and EBITDA rose by +14.9% to $534.1 million, indicating improved operational efficiency.  If global growth picks up under a Trump presidency and an improving China, QUB is well positioned.
    • Business alignments: Qube, co-owner of Patrick Stevedores, experienced a 32.2% profit surge due to increased market share during competitor industrial actions.
    • Diversification: The $119 million acquisition of Coleman expanded Qube’s portfolio into mining-related logistics, diversifying its service offerings.

    We like QUB as a high-quality defensive industrial.

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    Qube Holdings (QUB)
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