Q: Do you believe Enterprise Group is undervalued here? Would it be a good entry point?
5i Research Answer:
Considering its small size, its debt (2X cash flow), its missed Q3 earnings, and relatively illiquid float, we would consider it a 'bit' undervalued at 12X next year's earnings. However, it has had many annual losses over the past decade, and the business can be cyclical. With the stock down 28% this year and with possible year end selling, we would pass on this for now.