at the current prices, it seems to me that they are good entry point for both of these companies.
What is your opinion?
Telus yields a 6.3$ dividend at the current price and this is long term "income" investment.
I am also interested of your opinion on EFX following the steep drop in the stock price recently and also considering this week's announcement that they were able to dispose of Exterran Offshore at, what seems, a favorable price considering the expectations.
Thank you and I wish you and your families a very good year in 2024!
Michel C
T's valuation at 23x forward-earnings is expensive, but investors are paying for stability and dividends which makes it more attractive. It has some challenges but should do better as rates drop. We do not see any problems with it as a long term income investment and it was under pressure in the prior year mostly due to the higher rate environment and some issues at its subsidiary TIXT (which are not overly material to it).
EFX's valuation is 17.8x forward earnings which is OK, but considering the high EPS growth expectations this is a solid valuation. But of course the company needs to execute on this growth potential. We do not see a press release from the company on Exterran. The acquisition was a very large bet for the company. EFX has a large backlog of business following Q3 and if it is able to execute in 2024, the stock should do better. BUT....it is small, and debt has increased sharply and is now $1.3B (net). If there is a growth hiccup, this stock may stay quite weak because of the leverage. Thus, it is only for very aggressive investors, in our view.