The strong structural growth drivers elsewhere enhance the investment case.
At 14 times 2010 PE, 12% below the long-term average, this does not reflect the structural growth being delivered.
The company is generating substantial cash and remains a market leader in markets that have long term structural growth.
"So it demonstrates the structural growth of the company relative to its global media peers," he said of today's report.
Given a current rotation into quality in the sector, we favour structural growth combined with first-quartile industry positioning.
Yet they differ both in cyclical performance and long-term structural growth.
This time, the damage caused by the Great Recession is subjecting most advanced economies to secular stagnation and creating major structural growth challenges for emerging markets.
The group continues to take market share, its end markets are still in recovery mode and importantly, structural growth is still prevalent.
We think investors interested in the compelling longer term structural growth story that Ashtead has to offer should wait for a more interesting entry point.
In addition, we think the smaller listed players offer a strong structural growth opportunity, which is undervalued by their lower-rated share prices.
IMF and Harvard studies show that when national debt hits 90% of GDP, there is a tipping point where long-term structural growth is severely damaged.
