Having a look at this one for the first time. The sector looks like a very good growth story, perhaps constrained by the planning permission issue. Its a simple model driven by the speed of roll-out and I like the asset backed nature of the business that should keep competition fairly benign. Although, debt has to be a risk factor, particularly if a consumer recession looms.
Its always informative to see two firms in the same sector as we have here with PWR and GOAL. I note that the market is putting a higher rating on GOAL; it was first to market and appears to have developed a good following. However, there are some other factors that give a firmer foundation to this difference:
>> GOAL is more highly geared, that should mean that its eps should grow faster.
>> GOAL appears to be developing centres faster (5 p.a. versus 3 p.a. for PWR)and as this is from a lower base, it is growing proportionately much faster.
I have found it difficult to work out from the Company's Statement exactly how many sites are open in the financial periods - I thus detect a certain amount of dissembling on this point.
Anyway there appears to be plenty of development opportunity - the question is whether the management can increase its development schedule?
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