Q: Hello Team,
What do you like most about EIF and at what price do you think is attractive for accumulation?
What do you like most about EIF and at what price do you think is attractive for accumulation?
5i Research Answer:
EIF is cheap, has a good history of dividend growth, and it has survived economic disruptions (the pandemic) well. It pays a 5.4% dividend, has grown its sales and earnings nicely over the past five years, and both sales and earnings are expected to grow nicely in the coming years. We feel its current valuation is decent, at a 12X forward earnings and 0.9X forward sales multiple. We would be comfortable accumulating between here and ~$44.