PyroGenesis Appearing Cheap Just some quick analysis looking at PyroGenesis' Price/Earnings ratio: While no guidance has yet been provided for Q4, we have a pretty good sense based on backlog, payments received, HPQ share price etc.
Currently Q4 is looking like it should be similar to Q3 on an Earnings Per Share (EPS) basis. Assuming HPQ share price maintains where it's at until end of December, $0.07 will be derived to Pyro. Another minimum $0.02 or 0.03 should be derived from Drosrite and other ongoing projects. Therefore, full-year EPS will look something like this:
Q1: (0.01)
Q2: 0.04
Q3: 0.10
Q4: 0.10
Full Year: $0.23 EPS
At a current share price of, let's just round it to $3 / 0.23
= a PE of 13. The S&P 500 average is currently 37.44. Therefore, on just a PE basis, Pyro is selling extremely cheap relative to the S&P while discounting all its growth prospects.
Another way of looking at it is Pyro is only being valued at 2x HPQ at their currently fully diluted market caps ($262m vs $533m)
Seems to me, any meaningful contracts announced will cause this to surge, possibly even double in short time. Looking like an attractive entry point, in my opinion.
Cheers