Q: What do you think of this stock ? Is it time to sell it ?
Thanks !
Thanks !
5i Research Answer:
ALS is a diversified mining royalty company. ALS had a big slowdown in growth in 2023 which is expected to continue in 2024 but its outlook is very positive for 2025 and the stock has done well, up nearly 20% year-to-date. ALS has a good balance sheet with a net cash position, and generates solid cash from operations and free cash flows. ALS also pays a small yield at about 1.5%. It is trading at a lofty 71x forward earnings. There is optimism for 2025 but 2024 is expected to be another slow year in terms of growth. We are fine selling it at these highs to move into something with a more sustainable runway for long-term growth, however ALS does have potential for a recovery in 2025.