RE:Acquisition coming soon? I think the market is greatly underappreciating the organic earning upside from this company. I would estiamte NTM revenue and EBITDA of $105m and $8m, based on recent results and management commentary. The company's goal is to generate EBITDA margins of >10% in F2023. Given their conservative nature, I think they could hit those margins earlier.
At a market cap of $32m, XX is effectively trading at 5.5x EV/EBITDA.
That makes no sense.
At a minimum, the shares should be trading at 8x.
If you factor in the dilution from the convertibles -- XX should therefore be trading at >$2.15 after one or two good quarters.
At higher prices, we could see the company execute a deal or two and really move the needle.