Q: Any thoughts on DRX? I don't know much about it but it landed in my fundamentals screen
5i Research Answer:
DRX manufactures and erects structural stell for complex structures and miscellaneous metal work. Market cap is $277M after a 307% increase in its stock in the past year. It trades at 8X earnings with a tiny 0.24% dividend. DRX profitability improved meaningfully in recent years. Revenue is expected to grow around 10% over the next few years. Management has demonstrated a track record of execution by growing the business organically and generating healthy cash flow. DRX is attractive due to its cheap valuation, healthy growth, positive momentum. In the past, DRX had some cyclicality in the business, which could negatively impact operating results.