Q: VET continues to benefit from sector tailwinds at the moment. An obvious statement. However, within the business itself do you see the right strategy and execution happening? Is this a strong potential long term hold?
5i Research Answer:
VET has been investing heavily to grow organically and recently implemented a large acquisition to support growth. With that said, the company’s track record of acquisitions is not that impressive, as VET has had two large asset write-offs in the last three years. The company’s debt level is moderate, but not too concerning here. Overall, we prefer companies that focus primarily on organic growth, or acquisitive companies with a strong history of acquiring assets.