Post by
screamer99 on May 12, 2022 9:19am
Q1-22 Results - Monster figures
$0.24 EPS for the quarter! Any way you slice it, this one remains a bargain.
Supply chain issues and labour shortages will put a lid on performance, but management still expects 2022 to be higher than 2021. Turbulent quarters ahead will provide for more buying opportunities, but there is a safety level here (above $3).
Low cash flow in the quarter due to paying the tax bill and reducing AP to keep suppliers happy. Don't see an issue there.
Debt to cash flow is a little over 1x (slightly more when you include the lease payments as a cash flow deduction), but a very healthy balance sheet to speak of.
I'm in favour of getting every share the company can under the NCIB, and then increase the dividend unless cash will be used for future acquistions.
It wasn't too long ago that the company made $0.25/sh in a full year (2019) and still paid a $7m dividend while having a similar debt load to today. This is a coiled spring but may take a few quarters to really take off. Should be an easy double next summer after Q2-23 results are out.