Q: Your thoughts on this stock? Is it a buy, sell, or hold? Thanks
5i Research Answer:
XTRA has reported high revenue growth over the last twelve months at 85% while gross margins were also high over this timeframe at 70%. Net income is remains negative however. XTRA is continuing to burn through cash with cash from operations at negative 12.6M. XTRA is also trading at an expensive trailing sales multiple of 21.1x. XTRA has some AI appeal in it's product offering but the company has never had positive EPS since it has been publicly traded in 2017. Size is another risk here as it is $141M in market cap. We would say it is a sell as it is generating negative earnings, has negative momentum, and is small in nature.