Q: CGY seems to have righted the ship with their Q4 and YE earnings from two days ago. Would appreciate your analysis.
5i Research Answer:
EPS of $1.00 missed estimates of $1.07; revenue of $203.1M beat estimates of $200.4M. EBITDA of $24.2M beat estimates of 20.21M. Revenue rose 12% and profit rose on the end of an acquisition earn out fee. Defense rose 15%. The outlook was good, with 'double digit' growth expected next year in both revenue and EBITDA. Backlog is $1.4B, representing about two years of revenue. The stock is cheap at 12X earnings, and getting its mojo back as investors realize 50% of its business is now coming from the defence sector. The balance sheet is a bit leveraged, which would be one drawback.