Q: When looking at POW's historical stock price, I see two spikes: $70 in 1998 and $57 in 2004. I don't even believe that stock splits have anything to do with these prices that, even that long ago, are higher than today.
Was POW's stock price really that over-priced back then? I think POW is still cheap now, but with such a seemingly wide valuation range since the '90's do we have a sense where POW's current valuation sits relative to its history? Is it an apples : oranges comparison today vs. then?
How do we see POW's outlook going forward ?
Was POW's stock price really that over-priced back then? I think POW is still cheap now, but with such a seemingly wide valuation range since the '90's do we have a sense where POW's current valuation sits relative to its history? Is it an apples : oranges comparison today vs. then?
How do we see POW's outlook going forward ?
5i Research Answer:
POW split 2 for 1 in 2004, 1998 and 1986. Considering this, shares have risen 492% since 1997, and hit their all-time high in late June of this year. Current valuation of 10X earnings can still be considered 'cheap' certainly. Historical range is 7X (2022) to 21X (financial crisis with lower earnings).
The stock has gotten is mojo back this year, up 16%. The dividend is solid, and lower interest rates could help both the company and the valuation. Decent growth (8% to 10%) is expected going forward.