The gift that keeps on givingIt's amazing that GUD is still trading in the 5's.
Since GBT purchase in 2020....
Sales have gone from 200M to 350M
Shares outstanding have gone from 140M to 100M
Gross Margin from 41% to 49% (YTD)
Operating Margin from -15% to 4% (YTD)
and book value per share is at a high of $7.50
Cash from Ops and EBITDA are at highs in TTM
It truly is a hidden gem. The narrative around this company of being a failure is false. Remove the years where it was basically a SPAC (almost 6 years) and covid integration years (2 years), this company is early in its story.
The margins will continue to improve as costs decrease and sales increase. Again since 2020...
SG&A cost margin has gone from 37% of sales down to 26.65% (YTD)
Amortization has gone from around 17% to 12.4% (YTD)
Total operating expenses as a % of sales has gone from 56% down to 45%
The current pipeline will add more than 100M to sales in the next 3 years and what if costs drop to 40% of sales. GUD will have around 50M in EBIT in 2028. Where will the share count be? 90M shares? This stock could easily be 12-15$ a share and it continues to allow you to buy shares at a steep discount.