Q: They issued their first q results as a public company. The dividend was set at 92 cents (23 cents per q)(5.8% yield) for the year.I believe they beat on EBITDA and earnings. Very little debt. The stock seems undervalued and looks like a nice long-term hold. It is only covered by 2 brokers, but more were on the conference call.
Your thoughts please.
Your thoughts please.
5i Research Answer:
The dividend is a nice start. The stock has declined $4/share since listing which does make it more interesting. This not uncommon with spin outs. EBITDA increased 37% in the quarter and earnings increased 32%. Production was good as were commodity prices. The commentary sounded positive. It has four analysts now, with an average target price $19.50. They do expect slightly lower earnings in 2026. Its small size adds risk, but we think it looks decent now for a small cap consumer name, of which there are limited choices in Canada.