Post by
Scott27 on Oct 30, 2024 12:08pm
FTG in Yesterday's Motley Fool
Of interest to the FLY board will be the following from yesterday’s Motley Fool:
“A Canadian stock serving a big market
Firan Technology Group (TSX:FTG) might only have a market cap of $164 million, but it has been on a roll over the past year. Its stock is up 100% over the past year. The reason for this strong appreciation is good execution, strong growth, and a low starting multiple.
Firan provides specialized circuit boards and cockpit components for the aerospace industry. Out of the pandemic, the company has enjoyed steady organic growth as airplane manufacturers catch up on their substantial backlog demand.
Firan has also made some opportunistic acquisitions that expand its geographic and customer mix. The company targets 15% annual growth. So far, in 2024, it has grown revenues by 22% and adjusted earnings per share (EPS) by 36%.
With an enterprise value-to-earnings before interest, tax, depreciation, and amortization (EBITDA) ratio of 6.6 and a free cash flow yield of 11%, this Canadian stock is a bargain when compared to its growth aspirations.”
In addition to a low EBITDA multiple, high free cash flow yield, minimal debt, and 15% plus annual growth is that FTG: 1) is second among North American suppliers to the aviation and defense sector in total sales revenue for advanced PCBs, 2) has a current existing backlog already today of more than 66% of next year’s estimated total annual revenue, 3) is protected by a significant moat given the high barrier of entry provided by mandatory regulatory conditions and strict industry standards for suppliers to the aviation and defense sector, 4) perpetually benefits from the advantageous CDN/US exchange rate that creates a natural hedge between operating costs and revenues, and 5) is superbly well managed by a proven team of competent executives highly regarded across the PCB manufacturing and aviation and defense industries.
All in all, FLY’s joining the FTG family at this time would appear to be a rather opportune outcome for both FLY and FTG. By the way, FTG just hit an all time high of $7.12.
For those who may be interested, here is a good presentation about FTG:
https://www.ftgcorp.com/wp-content/uploads/2024/10/FTG-Investor-Presentation-Oct-24-fly-small-size-full-res.pdf