Q: Is Firan a worthwhile purchase at this time?
5i Research Answer:
FTG operates as a manufacturer of electronics equipment such as circuit boards, keyboard, etc., and is now trading at 11.7x times' Forward P/E. The momentum in share price recently is positive as growth revenue growth has accelerated to around 58% in the most recent quarter (around 20% organic growth, the rest was contributed by the recent large acquisition). The balance sheet is okay, with net debt of $31M and net debt/EBITDA of 1.6x. The company’s growth has been strong recently and the stock has very positive momentum. Its small size ($95M) adds risk, but it has a solid list of large shareholders (two entities own 30% and insiders own 12% directly) and business is good. Note the one analyst on the stock does expect lower EPS in 2024.