RE:Close at $2.90 today...investors realizing stock undervaluedAgain, our thoughts are in line.
Let me just remind some of you that last year the company's debt was reduced by $30 million through the conversion of its convertible debt. And despite the company having demonstrated an meaningful operational turnaround, the market cap is less than $30 million. So equity holders (yes, I know equity has changed hands) got $30 million for FREE and that hasn't yet been fully reflected in the shares.
I think a fair value (in the near-term) is now $4.50/share. That values the equity at $55 million. Longer-term I think we move to $7/share.
These are my new estimates.
| | Q1/16 | Q2/16 | Q3/16 | Q4/16 | 2016 | 2017 |
| | | | | | | |
| Revenue | 74.6 | 69.7 | 71.9 | 77.8 | 294.0 | 285.2 |
| Growth YoY % | (1.8%) | (5.1%) | (3.0%) | (4.0%) | (3.5%) | (3.0%) |
| | | | | | | |
| Gross Margin % | 23.9% | 24.6% | 25.2% | 25.5% | 24.8% | 25.2% |
| | | | | | | |
| EBITDA | 5.7 | 4.5 | 6.3 | 8.0 | 24.4 | 25.5 |
| Margin % | 7.6% | 6.5% | 8.7% | 10.3% | 8.3% | 8.9% |
| | | | | | | |
| Adjusted EPS | $0.19 | $0.09 | $0.25 | $0.37 | $0.90 | $1.05 |