This post on XMH Holdings ("XMH") is in response to a reader's request. XMH distributes marine and industrial diesel engines and generators. XMH's customers are the shipyards, shop owners, hotel proprietors and mine owners.

XMH's price chart. Source: Bloomberg

XMH's price chart (above) shows that its share price has a run up of 80% in the last 12 months. So the question is: Is there more upside to be realised or will gravity get the better of XMH's share price? Without deep diving into the business, there are several aspects to like about XMH. (1) XMH is Conservatively Financed From the latest announcement, there are $15.5 mil borrowings. In the same period last year, borrowing levels are negligible at $342k. Reason for increased leverage is due to consolidation of MPG Group. While no longer debt-free, XMH's gearing is still comfortable at debt-to-equity ratio of 27%. (2) Sustainable Dividends Annualised earnings ......