Q: Dont hear a lot about this company. What are your thoughts going forward
Buy Sell or Hold
Buy Sell or Hold
5i Research Answer:
CGY is a bit of a 'sleeper' stock, but it has generally done OK over the past 20 years. It has net cash, has been historically very profitable, and generates good cash flow. It historically had mostly government contracts, which added visibility and reliability, but it has been expanding its business with select acquisitions (announced one today, also). It trades at 15X earnings with a 2.2% dividend. Growth slowed in 2021 and 2021, but based on forecasts EPS is expected to grow by 25%+ in 2024. We would consider it a decent--but not great--small cap. It is not one we would worry much about, but at the same time it is not one that is going to double and triple.