RE:Amazing quarter and year! Calgaryrider wrote: Amazing quarter and great year, $IBG. Now they’re trading at ~4xEBITDA and ~8xEPS, where their crappier peers are trading at double those metrics.
This is is a steal.
And unloved unknown steal.
Extremely grea value has been created over the last 5 yrs.
The question is, how are they going to translate that into shareholder value.
I love this company.
They’ve blown past good and are now great and getting better.
Time to start some roadshows.
$20M in Share buybacks this year.
Then Dividends.
Make a plan and execute it!
The business is robust. I ain’t going anywhere until they do.
Good luck, longs.
And please post analyst commentary if you get it!
Thanks,
CRider.
Nice quarter for sure. Interesting to see them beat their top-line guidance from end of Q3 and great to see a healthy/growing backlog. I also noted a decidedly more "upbeat" (promotional?) tone to the release.
I would expect/hope this will bring back some bids and move the floor up to the $4.50-5.00 range. But I don't think it's good enough to get the market really excited about IBI shares, particularly with so much economic uncertainty. In this market I fear the shares will continue to languish on lack of mindblowing news.
The Q4 margin was fine but not great; there was some softening in the international segment; and in the MD&A they mention a slowdown in infrastructure spending. Much of their success has been in Canada and --- fairly or not --- I think that market is being treated with skepticism. Revenue guidance for 2019 is less than 1% above 2018. Curious if they'll give further colour on the call as to slowdown in infrastructure vs growth in intelligence. I'm really interested to get an update on their new tech initiatives.
They didn't pay down much debt in 2018 and are guiding to $10m of repayment in 2019. I think they're still in deleverage mode and I don't expect a dividend catalyst any time soon. As for buybacks, I don't believe they have an NCIB in place so we'll have to see an announcement if they're thinking that way.
I get EV of approx $275m at $4.25 share price. Thats approx a 7.5x EBITDA multiple, versus peers in the 11-12x range. An 8x brings us to $4.60, 9x to $5.55, and 10x to $6.50.
Just my thoughts. All spitting in the wind.