Q: Good afternoon 5i team,
What are your views of MDI's latest results? Investors took it positively with the stock up 13.50% on the day.Looking forward to the next 12 to 18 months the company gave a very positive outlook on it's clients signing large deals for it's services.Do you still view the shares as undervalued and would you recommend accumulating?
Many thanks,
Jean
What are your views of MDI's latest results? Investors took it positively with the stock up 13.50% on the day.Looking forward to the next 12 to 18 months the company gave a very positive outlook on it's clients signing large deals for it's services.Do you still view the shares as undervalued and would you recommend accumulating?
Many thanks,
Jean
5i Research Answer:
EPS of 1c missed estimates of 6.5c; revenue of $187.5M slightly beat estimates. EBITDA of $20.5M beat estimates by 4%. While profit declined year over year, sales rose more than 10%, even with Canada/US falling 21%. Central and S. America sales rose 79%. Tariffs are slowing down customers, but MDI still forecasts 20% growth this year. EPS should double this year from 2024 levels. Without tariffs, the outlook would be even better. It remains debt free (net) with about $9M cash. With the bounce, shares are 14X earnings. It is still small and cyclical, so we would size accordingly, but we would be OK buying some on the expected growth and renewed interest in the stock.