EPS of 21c beat estimates of 17c; revenue of $163.8M rose 5% from the prior year. EBITDA was $21.2M vs $17.8M. XTC announced a share buyback plan as well. $100M in net debt is about 1.5X cash flow, a reasonable amount of leverage. Per share earnings rose 31% in the quarter. Over the next year, EPS is expected to rise about 30% into 2025. The stock is cheap at 10X earnings, but has been a value trap for some time. Insiders own 26%. The dividend is nice, but it has not been raised since February 22. We do not see it as a bad company, but it is small, trading is fairly thin, and only one analyst follows it. In a cyclical industry, it is not going to get a huge valuation. We would consider it a good privatization or takeover candidate, but we would have also said that five years ago. We would view it as a HOLD, primarily for income.
5i Research Answer: