Q: Hello,
I've held it for 10 years or so since it was around $100, and now the share price is back to where it was 10 years ago.
What's your view on the company going forward? Is this a time to throw a towel?
Thanks
I've held it for 10 years or so since it was around $100, and now the share price is back to where it was 10 years ago.
What's your view on the company going forward? Is this a time to throw a towel?
Thanks
5i Research Answer:
MRC is not an overly exciting name, but it is cheap at 10X forward earnings. It is a $1.1B company with $6.2B in net debt, and a net debt to EBITDA ratio of 11.5X. It has a high insider ownership at 60%, but has high economic and interest rate risks. Revenue growth has been slowing, but its free cash flow yield is high, and we feel that for a patient investor this name may eventually see some positive momentum eventually, but otherwise we would be comfortable with moving on from this name.