re: News: DuluxGroup boosts H1 profit, foreca...
Fair call guys, thanks for your thoughts. I appreciate it is a quality business and should be quite resilient in all economic scenarios (as it was in the GFC).
You're quite right re the cashflow comment, the half-year was average but prior years were significantly better. The free cashflow (by my calcs averages approx. $100m p/a, but should increase with Alesco acquisition) does need to support a $2.2bn market cap though...that's less than 5%. They will need a fair few years to reduce that debt burden at that rate.
I guess for me personally is not quite cheap enough to justify a position, and i see better value in other quality stocks (though not many to be fair).
DLX Price at posting:
$5.68 Sentiment: Sell Disclosure: Not Held
