Q: What do you think about SHLE at this price level?
5i Research Answer:
Down 26% YTD, momentum is not great, and its small size adds some risk. Debt is about 2.2X cash flow so that is another risk. But it is certainly priced right at 3X earnings. The last quarter was good but estimates have been moving down. News has been VERY quiet. Other than a renewal of the share buyback, there has been no news since July. Insiders own 15% and there has been a minor amount of selling. EPS is expected to move a bit lower in 2026 (two analysts' estimates). All in, we think it is interesting due to the valuation primarily. However we would wait here to see how year-end tax selling goes. It has the potential for gains, but also the potential to be a value trap without some sort of catalyst to create more interest.