Shares of Greencross Limited (ASX: GXL) have fallen a further 1.7% today and are now trading at their lowest price since May this year at just $8.42. The shares have dropped nearly 22% since late August which compares to a 2.2% decline by the broader S&P/ASX 200 Index (Index: ^AXJO) (ASX: XJO).
Greencross is a leading provider of veterinary services and pet care retailing in Australia. Following its recent acquisition of City Farmers, it is estimated that the company holds a 7.5% share of the local market but is striving for 20% market dominance. Indeed, it is in a solid position to benefit from the trend that is seeing more and more household pets become 'part of the family' with owners increasingly willing to pay for their premium care.
Following on from a record performance in FY14, which saw pro forma NPAT and revenue rise 45% and 23% respectively, the company reported that it is thus far making solid progress in FY15. At its annual general meeting (AGM) on Thursday, it said that sales were up 45% compared to the prior corresponding period (pcp) in Q1. One downer from the report was that sales from City Farmers so far in FY15 have been below expectations, down 3%.
Although the shares still aren't a screaming bargain at today's price – trading on a trailing P/E ratio of 26.1 – Greencross is still presenting as a very nice buy and could deliver some fantastic returns over the coming years.