Q: Peter and His Wonder Team
There quarterly results look strong...Please give me your prognosis for MATR:CA. In other words is it a good buy in terms of growth and valuation or am I missing something?
Thanks for your objective and professional opinion which is always helpful.
There quarterly results look strong...Please give me your prognosis for MATR:CA. In other words is it a good buy in terms of growth and valuation or am I missing something?
Thanks for your objective and professional opinion which is always helpful.
5i Research Answer:
EPS of 34c crushed estimates of 16c; revenue of $320M was 1% better than expected. EBITDA of $54M beat estimates of $38.9M. The quarter was certainly strong, but inclued 'pull forward' business because of tariffs. The company expects sequentially lower results in the Q2. The stock is very cheap at 8X earnings, and very good EPS is expected in 2025 and 2026, but the company has a very highly leveraged balance sheet, and this limits interest in an uncertain market environment. Its small size is also a factor. We do not think much is 'wrong' here but there are risks, and the valuation is not likely that out of line for a small company in a cyclical business with a lot of debt.