Q: Can you comment on their earnings and your opinion of their prospects...is their some growth on the horizon to go with the yield of about 5.75%? Thanks!
5i Research Answer:
ADW.A is now trading at 18x times' Forward P/E. In the 3Q, ADW.A’s revenue declined 4% to $100.2M, in-line with estimate, and EPS is $0.07 slightly beating estimates of $0.05. The balance sheet is still highly leveraged due to the decline in earnings in recent years, with net debt/EBITDA of 5.9x. Based on consensus estimates, sales are expected to grow by around 2% going forward.We tend to stay away from turnaround situations, especially with highly leveraged names with mature growth: we think there are better opportunities in the current market.