RE:RE:Valens earns $2.54-million in Q1 fiscal 2020boarman wrote: other than revenue, everything is down quarter over quarter and had been decreasing since August of last year.. big drop tomorrow?
If you look at the investors presentation, slide 10, you'll see that toll processing margins were expected to go down in time. The transition to white labels will preserve better margins but like they mention in their Q1 release, there's been delays in the industry.
The forecast for 2020 is $72.4M Adj EBITDA and Adj EPS of $.34 per share. Imo, considering COVID-19 impacted their inputs (for march and Q2) despite stronger demand for cannabis products, they might end the year below forecast. Still, so far they're at $14.3/$72.4 (20%) and $.04/.34 (12%).
Still, even if you use a "low" EBITDA scenario of $50M for 2020, considering they have no debt and over $50M in cash and short term investments, the current multiple would be about 6x. For a growing company, it's quite easy to see that even in a low scenario the share price should be way above the current share price.