Bapcor are the old Bursons’ business, and do auto parts.

Today, their long standing CEO announced the intention to step down. The share price dropped 8% or so.


On some level it must be flattering. The normal pattern for financials is that it tends to rise.

But with spending to shift back from “goods” to “services” as the pandemic fades, this might well be a good time to wave farewell. Out on a high note, as it were.

And it certainly seems fair to say that demand was elevated, with the pandemic leading to a noticeable boost.


They themselves make the observation, highlighted below in the comment about elevated demand.


As such, paying c19x for a cyclical business that is likely over-earning, with a departing CEO, is a little exy.

You could well be paying 25x, which is what the trailing PE ratio is trying to tell us (2nd column, 3rd Row) below.

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