Q: What is your opinion of Fresh Factory Q1 results, growth profile and relative valuation as they report in US Dollars but the stock trades in CAD dollars?
5i Research Answer:
No analysts follow the company, so there are no estimates. Q1 revenue rose 27% to $10.7M (a record for the company). EBITDA was $0.9M. Production started at its new facility. Net income was $0.28M, compared with a loss of $0.1M last year. Margins increased nicely. It was a solid quarter for the company. The stock is down 10% YTD but up 48% in 52 weeks. At $52M market cap, risks need to be considered very high here. Even after EBITDA conversion to C$ the stock is not cheap.