Q: hits the important check marks i think. your comments would be appreciated thanks
5i Research Answer:
WJX pays a yield of 4.5%, has grown its sales and earnings at a 9% and 19% 5-year CAGR, respectively, and it has been effective in paying down debt. It is a smaller name ($630M market cap) and has a mostly growing balance sheet. It trades at a cheap valuation of 0.3X forward sales and 8X forward earnings. We feel it looks decent here for an income play, but its profit margins are thin and its free cash flow can be lumpy. Overall, we like it for a dividend play along with some capital appreciation.