Q: The valuation on this company is high although the stock has dropped quite a bit. Is there value in the stock at it's current price?
5i Research Answer:
It is a good company, but not cheap at 29x earnings. Investors have been paying a premium for consistent cash flow and the non-threat of AI to the business. High debt adds some risk here, but decent earnings growth is expected. The stock is down 7% YTD. The last quarter was OK. We think it is ownable, but would prefer a cheaper valuation.