RE:Looking like Deep ValueI see it at sub 5x EBITDA and a FCF yield (2 year average to normalize for working capital) above 25%. I don't see as a value trap but an opportunity. With leverage ratio sub 2 and FCF growing post covid managment may be wise to buy back stock aggressively or become a take out target. Either way should be good outcome for shareholders. Capex is way lower than D&A so cash greater than earnings. And shares should be up 6% on settlement payment alone in Q1.
DanielDarden123 wrote: With an annualized PE~3.5, reduced debt and an improvement in working capital, some would still consider this a value trap. However, dominance in Quebec as the recovery is occurring leaves this co. In a favourable position in a stable industry. Fear of a value trap will keep some away until sentiment changes and the sp improves accordingly. Being early is where the profits are really made but patience will be required because most want to be comfortable before buying.