EBOS Group (EBO AU), a healthcare and animal-care distribution group, is currently trading around a six-year low.
That seems a tad harsh with bottom-line earnings up 39% over that timeframe. And a trailing yield of ~6.5%, well above peers.
The Sigma Healthcare (SIG AU)/Chemist Warehouse combination remains a structural competitive concern. But right here, I’d be surprised if (potential) suitors are not running a ruler over EBOS.
The Trade:
Fundamentally, EBOS is sound.
The current share price is beaten up.
I’d still be getting some exposure here; although it’s not a pound-the-table trade idea.