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  5. WJX: This stock still seems like a bargain even at current price. [Wajax Corporation]
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Q: This stock still seems like a bargain even at current price. They beat the numbers by a nice margin and their outlook both short and long term was quite upbeat (I listened to the conference call).

Asked by Murray on November 03, 2021
5i Research Answer:

It is still very cheap at 11X earnings. It is, still, a cyclical company so may never get a 20X multiple. Debt has been an issue, but it is coming down. It cut the dividend in 2015, but did not have to cut in the pandemic. Sales missed estimates but EPS beat by 20%. Cash flow is good. There are risks here, and it is still a relatively small company, but it is doing a lot of things right and risk is being reduced overall. Flat earnings are forecast next year, based on consensus.