Not just comemrcially self-sustainable, but unsinkable

@AmbiGuity,

As mentioned on that other stock thread, to the extent that it is of interest to you, here's why I believe REH is an unsinkable business:

Reece has been in business since 1920, it has been listed on the Australian Stock Exchange since 1954 (has been profitable every year since then) and has been under the control of one family since 1969. Unfortunately I am only been a shareholder since 2003.

But since then the company has grown its Revenues from $740m to $2.30m (CAGR of 9%pa), NPAT from $47m to $191m (11%pa CAGR) and DPS from 21cps to 92cps (12% CAGR).

Cumulatively, the company has, over that time generated some $1.7bn of Operating Cash Flow and has invested $750m into maintenance and growth capex. $720m has been paid out as dividends. An acquisition amounting to $300m was made in 2014. The company has no debt.

That's what I would describe as a business that is eminently self-sustainable.

During Reece's near 100-year trading history, there have been a number of pretty major political and economic upheavals in Australia and indeed int eh rest of the world.

If Reece was ever going to be sunk, it would have done so a long time ago.