IH is now trading at 18.3x times forward P/E (5-year historical averages range from 17.6x to 25x). TIH is a well-managed company that prioritizes organic growth. In the last five years, the company’s revenue growth was around 7%, and dividend per share growth was around 14% on average. The balance sheet is healthy, with a net cash of $136M. We think TIH is run by a high-quality management team. Having said that, the industry that TIH operates in is inherently cyclical, some of the slowdowns in equipment rental (due to the challenging macro environment which slows down industrial activities) may not fully reflect on the financials yet. Still, we are okay to add some here and would be willing to average into TIH over time. There maybe volatility along the way but we think a long-term investor in TIH will do okay five years from now at this price.
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