Q: there is a very interesting article on terravest in todays globe, compares it to shawcor which is a large holding-- i like that space. the article says terravest is way undervalued with great margins. what do you think. dave
5i Research Answer:
Here is a reference answer from last month. The article sums things up nicely. With market cap of $500M, no analysts, and 50% of shares tightly held, including more than 25% insiders, it does not get a lot of attention, but reads well. It has been consistently profitable and is very cheap. Debt has doubled since 2020, so we would be a bit cautious if it makes more acquisitions, but cash flow is growing and looks good. A 'sleeper' stock so it may need a catalyst to ramp up, but shares are up 6-fold since 2016 so it certainly has created value. It may not be 'exciting' but delivers the goods.