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You know the company is at an inflection point when they go from reporting adjusted ebitda to reporting on free cash flow. Many companies like to brag about proforma earnings which is earnings way out into the future but they seldom talk about what the company is earning today. How much of the cash that's being generated can be used to pay shareholders if they were to issue dividends? As we can see that when the stock market trades at astronomical earnings multiples, it is due to investors putting too much emphasis and faith on future earnings potential which can be highly speculative. As for adjusted ebitda, I would stay far away from any company that brags about adjusted ebitda when net income is negative. They are only sharing information they want you to hear and steering you further away from the truth.
Most companies under $100m market cap in Canada are garbage but once in a while you find an opportunity.
Take advantage.
