Elevator Pitch
Philippines-listed Puregold Price Club, Inc. (OTCPK:PGCMF) (OTC:PRGLY) [PGOLD:PM] or PGOLD, is trading at 18.3 times consensus forward FY2019 P/E representing a discount to its historical five-year average forward P/E of approximately 20 times.
In the near term, reduced supplier support has hurt Puregold's profitability. But with S&R warehouse stores delivering strong double-digit earnings growth and management expecting supplier support to increase in 2H2019, the company's gross margin and earnings outlook for 2H2019 looks promising.
PGOLD's long-term growth prospects are intact with the company continuing with its aggressive store expansion