Colabor Group Inc T.GCL

Valuation

[DanielDarden123]

With annualized Ebitda of ~$35M now and an enterprise value of $120M, this is trading at <5X Ebitda. Seems like it is undervalued by the market with debt ~ equal Ebitda. This should move up as investors become more familiar.

[bucheroncapital]

Stock lagging , but fundamentals improving and debt reducing I,like that.

[DanielDarden123]

While the market inaction has been a disappointment, Management continues to steer GCL in the right direction by adding new contracts for ‘23. Sometimes investors are hesitant until things are obvious, especially when rates are rising. This has provided an excellent opportunity to add to a position cheaply even though patience may be required short term. Eventually value will surface in other’s

[Pat123]

Unfortunately with capex around 20M for the move to the new facility, the stock is dead for 2023

[DanielDarden123]

If this was a high dividend payer, I might agree as free cash flow will be impacted temporarily. Longer term investors are constantly looking for opportunities long term and will buy in advance of the recovery. As always, sentiment will decide when this begins to move up. Potential sellers will have to decide whether they want to risk not being able to buy back in before the rise without paying a

[prophetoffactz]

A one year wait is only equivalent to a one year bond yield.  Look at where GCL was trading last time EBITDA was this high. Far, far higher...

[DanielDarden]

Obviously, others are beginning to see the value here recently. As more analysts cover this story it should become better known and the comfort level should improve, especially in Quebec, where it is expanding it’s presence. The investment in Maturin will be interesting to watch with the current level of food inflation.