IBI Group Inc T.IBG.DB.E

Stock Price

[Oakboy1110]

At the beginning of the week(Feb 25/19) we appeared to be moving up into the fives in advance of the earnings release on Thursday evening (Mar 7/19). Things changed on Thursday and IBI Group dropped almost 8% from the high $4.80s to $4.50. On Wednesday evening a James Telfser on BNN gave a medeocre report even suggesting that he was not impressed with the management. Does anyone else know of a reason the shares dropped on Thursday and Friday?

Getting a little nervous because the market is mostly right, I reviewed some financials. I assumed the 4th quarter sales met the latest guideline and that $85.1 million is in line with the last quarter of the previous two years. I also assumed EBITDA at 10% of revenue.  My skills are not as great as Calgaryrider but the table below tells me that IBI should be selling at $7 or above.

Unlike last years final quarter and this fourth quarters published estimates of 5 cents net income, lets hope we get a suprise to the upside and the stock gets some favourable press.

 

 

                                                      IBI Group                            Calian                        Stantec
                                             2018             2017                 2018      2017               2018       2017

Adj EBITDA per share         $1.18est       $1.30               $3.21      $3.06              $3.45      $3.10

Market price at date of
earnings release                  $4.50             $7.63              $28.80     $34.45            $31.12    $32.61


Price/Adj EBITDA                   3.8                 5.9                   9.0           11.3                  9.0         10.5