Q: your thoughts on their earnings?
Would you call this a buy right now?
Are there insider positions and if so what are they?
Would you call this a buy right now?
Are there insider positions and if so what are they?
5i Research Answer:
CHE.UN is now trading at 4.1x times' EV/EBITDA, the lower end of historical averages. In the 1Q, CHE.UN’s revenue grew 21% to $471M, beating estimates of $429M and EPS was $0.32, beating estimates of $0.27. The balance sheet is leveraged but has improved, with net debt to Adjusted EBITDA in the trailing twelve-months of 2.15x times which improved nicely from 3.49x last year. With the debt level improved, CHE.UN is looking a bit better and is cheap, but remains a cyclical company with a quite weak long term performance record. Shares are down more than6 60% since 2014. Insiders currently own about 0.23% of the total share outstanding. With its small size we would still only rate it a HOLD at best.