Q: Hello Team,
Could I have your thoughts on SDE.ca please. Should I own or pass?
Many thanks!
Could I have your thoughts on SDE.ca please. Should I own or pass?
Many thanks!
5i Research Answer:
SDE has had a good year, up 58%, and market cap is now over $1B, which can bring out new interest. At 19X earnings it is more expensive than peers but it has a strong balance sheet and very good growth is expected (analysts expect EPS to double+ next year). It is still in growth mode so free cash flow is less robust (no dividend). Insiders own 15%. The last quarter was very good. We would be comfortable buying. It is expensive, but certainly growing nicely and outperforming the sector.