AMA’s purchase of the Gemini Accident Repair Centres business...

AMA’s purchase of the Gemini Accident Repair Centres business dominated a much improved 2016 result... Along with a number of abnormal and one-off expenses, this means comparisons with 2015 are fairly meaningless.

Pressure from insurers and the benefits of economies of scale are encouraging the smaller groups and independent operators to sell to the likes of AMA. There's still scope for further consolidation of the panel repair industry and we’d expect AMA to purchase additional smaller operators in coming years, although growth is likely to be slower.

AMA’s shares have trebled over the past three years, putting them on a multiple of 29 times 2016 earnings and 21 times those expected for 2017. With growth likely to be slower in coming years, we think there is now better value elsewhere

https://www.intelligentinvestor.com.au/reporting-season-briefs-1809221

The review lines up with my thinking on AMA.

While growth through acquisition is still available as the industry consolidates the acquisitions are likely to be of smaller players and the market possibly underestimates the time it will take for AMA to achieve consolidator scale in the industry.