Earlier this week Super Retail Group issued it's third profit downgrade for the calendar year. For a company that has a good track record the downgrades have put pressure on a traditionally resilient valuation. Nathan Parkin, Portfolio Manager of the Perpetual Ethical Fund, has recently added SUL to his portfolio and is looking beyond short term factors impacting the stock. According to Parkin on a valuation perspective SUL is now trading on a an earnings multiple below the market and offers a 4% yield. Parkin says he still believes the management team at Super Retail are top quality and that the business maintains good cash generation. Over the next two years SUL is implementing a number of supply chain investments that should drive significant efficiencies to the business in the future. You can watch a more detailed update including other recent stock additions on the following video: (VIEW LINK)
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