Q: Despite the debt and huge downgrade in forecasted EPS, NPI looks to be getting pretty cheap. Do you agree, and if not, what price do you believe puts it at a buy?
5i Research Answer:
Sort of. Because forecasted earnings are expected to show a big drop ($2.02 to $1.15), forward P/E is 21X. This is cheaper than the peer average of 24X, and a bit cheaper than its own historical average. But it has historically shown much better growth, and growth has slowed. In addition, higher interest rates should lower valuations somewhat. Overall, it is getting more interesting after a 33% YTD decline, but we would not say it is super cheap based on its fundamentals.