The SEEK Limited (ASX: SEK) share price has gained about 14% in the past two months despite Citigroup analysts warning that the company was facing a downward cycle in early September.
The Seek share price was trading at $16.52 on September 7 when it was reported that Citigroup was concerned that Seek, Australia's largest jobs website, was exposed to a projected downturn in the construction industry and the stock was likely to take a hit.
But, so far, Seek's stock price has defied such concerns and closed on Tuesday at $18.77.
Seek reported a profit of $362 million for financial year (FY) 2017, down from the $399.4 million it recorded for FY 2016.
Part of FY 2017's shortfall of $37.4 million on the previous year's profits can be attributed to increases in operations and administrative expenses and marketing related expenses.
And, although profits were down, revenue was up.
Notably, Seek increased its revenue to over $1 billion for the first time in its 20-year history, with 60% of that revenue coming from international operations.
In early October Seek, with a market cap of $6.52 billion, announced the completion of the privatisation and delisting of Zhaopin, a popular career platform in China, from the New York Stock Exchange.
And in March, Seek increased its ownership in OES, an online education services website, from 50% to 80%.
The employment website operator with a hand in education and vocational training now counts ANZ Employment, SEEK Asia, Brasil Online, OCC, Education and Early Stage Ventures ,and Zhaopin, among its segments.
Seek's return on equity has averaged about 28% over the past five years and its stock is trading at about 19x earnings.
In the digital advertising space, Carsales.Com Ltd (ASX: CAR) trades at about 30x times earnings while in the educational services sector G8 Education Ltd (ASX: GEM) trades at around 20x earnings.
Seek has also increased its total dividend over the past 5 years at a compound annual growth rate of 19%.
All this means it is certainly worth a look.
Seek has a commanding position in Australia and as such it may represent a solid long-term investment.
Of course, the validity of that statement hinges on a number of factors but I would say that the success of the company's international expansion will have a significant impact.
If all goes well, a greater presence in foreign markets will provide a buffer against the whims of local market conditions.
