Stockopedia comments Paul Scott - HVO20 Jul 2024 14:00
Paul’s opinion - unchanged, I see HVO positively, so am happy to give it another GREEN LIGHT.
It seems a reasonably priced, GARP share (growth at reasonable price).
My only reservation is that big profit margins always attracts competition, sooner or later, if there isn’t a strong enough moat of IP. I’m not convinced the moat here is strong enough to prevent that happening eventually. After all, HVO built this business quite quickly in recent years, so why couldn’t someone else do the same, if they have the expertise and some startup funding? Hence why I think it’s not a share to chase up to expensive levels. Thankfully it’s not expensive, with a 2025 fwd PER of 18.8x, and comfort of plenty of cash sitting in the bank.
So I remain positive, and let’s hope the forecasts are beaten again, which HVO has a history of doing.
https://app.stockopedia.com/content/small-cap-value-report-wed-17-july-2024-rm-sos-rno-chrt-hvo-1002549?order=createdAt&sort=desc&mode=threaded
(SUBSCRIPTION ONLY HENCE PRINT OUT)