Q: Hi 5i Team - This has not been a favourable stock for a long time. However is it possible it may have some possibilities going forward. How much debt has been paid down and how much remains. How did the last quarter look. Do you think management has the capability to turn this around or is new management needed. Are there any fundamentals you think are noteworthy. Also what is the insider and institutional ownership and has there been any significant trading recently.
Thanks.
Thanks.
5i Research Answer:
In the Q2, EPS was -14c, vs estimates -6.5c; revenue $372M matched estimates. But, another miss, another loss. Debt is down about $50M this year, but still high at $997M, vs $327M cash flow. A loss is expected this year but consensus calls for nearly break-even in 2026. Insiders own 27% and have bought a little bit (net) in the past six months. FFH owns 20.4%. 25 institutions own about 26% of the stock (ex FFH). Considerng the 15-year return on this stock is minus 85% (!!) we think shareholders would welcome a shake up. It will take we think a very strong sector rally to get this one going. Net margins have been negative for 7 of the past 10 years. We would have no interest.