Post by
retiredcf on Mar 10, 2024 2:34pm
Assessment
First thing I have found related to the earnings. A pretty positive review nothwithstanding their preference for EQB. GLTA
EPS of $0.48 beat estimates of $0.34 and revenues of $28.85M beat estimates of $21.99M. The first quarter was marked by continued robust growth in its Point-of-Sale Receivable Purchase Program portfolio, which expanded 28% year-over-year. It is shifting its strategy from higher yielding, higher risk-weighted loans to lower yielding, ower risk-weighted (CMHC) loans in its non-core CRE portfolio. It expects this to enhance ROE. Historical sales growth has been strong, and its net profit margins are expanding. It trades at a cheap valuation of 7.1X forward earnings, and its balance sheet is robust. The stock is declining slightly on the release, and we consider these decent results. Its overall momentum over the years has been positive, although VBNK is a volatile name and we feel it may consolidate for a bit before moving higher. We think it looks OK here, but would prefer a stronger name such as EQB. (5iResearch)