Post by
AYCEBuffett on Nov 07, 2024 4:55pm
Q3 Results
Well the revenue was certainly worse than I had expected, but I must say I'm still not disappointed because the margins were very strong.. a good sign for the year to come. Despite being well below on revenue epxectations, EBITDA and cash flow still came in at what I hoped.
Also remember that most of their sales are in USD and a lot of their expenses are in CAD so they should benefit a lot from the Canadian dollar weakness
Further, lets not ignore that this may be the best their balance sheet has ever been. Yes a big part of that is the dilution in the quarter but that's done and reflected in the valuation. They have very little debt currently, and because of their cash the enterprise value is about $31M right now. that's about 10x the annualized cash flow year to date. Dirt cheap.
$9.9M cash, about $1M in debt, and $7.7M in working capital. All strong.
Some people might not like this quarter because of the sales, but this was a good one by any other measure and is a good sign for the future when sales are stronger.
Comment by
tony08 on Nov 07, 2024 10:40pm
I don't know why they don't mention EPS but looking on Cematrix website we see that they declare $0.005 EPS........That is almost three times less than Q3 / 2023 but at least it remains on the positive side.