Q: I believe that MEQ announced earnings in the recent past. Can I please have your take on the earnings results and your overall thoughts on how this company will do in the next 3 to 5 years. Thank You.
5i Research Answer:
Revenue of $54.8M matched estimates. Cash flow rose 30%, net operating income rose 20%. Efficiency improved, with margins rising 2 points to 63%. Vacancy was reduced to 4.5% from 7.2%. Consider the backdrop of higher rates, we would consider these solid results. The company also announced it would be starting its first dividend (11c per share) in early 2024. The stock is not cheap at 21X earnings, but has a very solid history of revenue growth and profitability. We would expect about 10% growth going forward, asssuming rates and the markets co-operate.