Q: Hi 5i,
I own HTL and hope you can provide your thoughts on the long term prospects for this company. It seems to be stuck in a trading range for the last year but did very well during 2021 to 2022. I thought the business was very interesting. thanks
I own HTL and hope you can provide your thoughts on the long term prospects for this company. It seems to be stuck in a trading range for the last year but did very well during 2021 to 2022. I thought the business was very interesting. thanks
5i Research Answer:
Sales growth has slowed over the past couple of years, but its debt balances are reasonable and it is profitable. Its free cash flow has shrunk over the past 12 months, but it has a decent cash balance of $15.9M, and its balance sheet has been expanding over the past several years. Analyst estimates call for strong growth in sales and earnings this year and if management can deliver, we feel that the company can break out of this trading range. It is a smaller name, but we would be fairly comfortable with this name as a longer-term position.