Is it the business these guys are in or is it just the people can’t get a success fire lit under this company and stock?
I don’t know what my total return is since buying as a 5i stock years ago, but I’m clearly not a great allocator of capital. This selection did offer income but at the cost of share price.
Analysts are finding positives but year over year things are just blah.
If they sold the business to large US Tech player, would it fetch much more than current share price?
Thanks
5-year return on ET is a blistering 3.65%, not counting dividends. The yield though of course is attractive at 6.41%. The sector has consolidate a LOT over the past 15 years, and one reason why the stock was interesting. However, with insiders at 65%, the company is not going to be sold unless insiders want it to be. But a take out we think would have to see at least a 30% control premium. They seem content collecting their dividends, though. It is still debt-free with about $90M cash. But forecasted EPS earnings for 2026 are lower than earnings in 2012 (to be fair, ET has paid $4.40 in special dividends since then). About 10% earnings growth is expected next year. We would give it an OK rating for income investors. We think growth-oriented investors can move on.