Q: Please provide your thoughts on MATR.T
Thanks.
Thanks.
5i Research Answer:
MATR has seen some recent insider buying, and is fairly cheap at 14X earnings, but we would like to see more proof of growth recovery. Its small size and sector cyclicality add risks, and debt is VERY high (7x cash flow). Earnings are expected to rise about 12% this year. Because of the leveraged balance sheet, we would like to see better growth, or a lower valuation. Thus, we will pass for now.