Q: I would like to hear your updated thoughts on this company. I believe that it trades at a Price/Sales between .3 to .35 which seems cheap. It seems overlooked somewhat maybe?
Thank you
Thank you
5i Research Answer:
ALYA is $167M market cap and about $300M enterprise value. F2026 sales are estimated at $505M so it is cheap on a P/S basis, certainly. With a gain of 13.5% this year it has lagged a bit, but it is very cheap also on earnings at 4X. Its small size and debt are likely holding back some interest here. It had lost money until last year, and EPS is expected to go from 5c last year to 35c to 40c (F2027, year end March). Cash flow is good and insiders own 24%. It has five analysts, all buys, average target price $3.34. If it can execute on its expected growth and perhaps lower debt it does have the potential to get re-rated higher.