and more coverageWe believe investors should “sharpen their pencils” on this name as the macro environment (aging demographics) remains very conducive to allow such aforementioned growth.
In a momentum-driven environment, fundamentals are ignored in the short-term. This will change and incredible value is now readily apparent. The company has never been in a better position with ~$60 million in cash, revenue and EBITDA run-rate ~$120/$32 million, expanding EBITDA margin profile (due to Sleep Management) and internal growth of greater than 25%. Those metrics would imply a forward EBITDA of ~$42 million. Based on a recent intra-day price of $0.99, that would imply a valuation of 5.8x versus a peer group average of 10-12x. Pending LOI’s of ~$15 million EBITDA would be further accretive, especially if done all cash, and push the valuation to even more compelling levels
https://beaconsecurities.ca/wordpress/wp-content/uploads/downloads/2015/07/PHM-2015-07-29.pdf