Q: Please comment on DND-T quarteral results. Thank you.
5i Research Answer:
DND is now trading at 8.6 times the forward P/E. In 2Q-2024, DND’s revenue grew 3.3% to $110M, in line with expectation and EPS was $0.08 beating estimates of -$0.13. The balance sheet is highly leveraged with a net debt of $1.3B and net debt/EBITDA of 9.6x. The company is in the process of selling assets and paying down debt after leveraging meaningfully to do M&A. Growth could pick up again in a better real estate market, but we tend to stay away from highly leveraged businesses. We think there are better opportunities in the current market today.