Hi hfrench, Thanks for your analysis, perhaps you could run the...

Hi hfrench,

Thanks for your analysis, perhaps you could run the same series of charts from ZEN's (albeit limited to this time) data for the sake of the comparison.

However I think your conclusion re. PEA's SP upside potential is a bit negative given the free cashflow yield of 12% for the next 3 years forecast in the brokers report should enable the company to reduce their gearing while also paying a reasonable dividend.

I note also that PEA's margins are holding up well despite the increased competition on BOO contracts from ZEN, who's revenue and market share gains have been made on the back of margins approximately half of PEA's.

While both are currently trading at sub 10 P/E's, ZEN's higher gearing and EV/EBITDA would imply that PEA has comparatively more headroom for SP appreciation over the medium term, and even more so when compared to others in the utilities rather than the mining services sectors.