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  5. CVX: I have been following CVX for a few years and it finally looks like they are getting some traction including good revenue v. [Cematrix Corporation]
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Q: I have been following CVX for a few years and it finally looks like they are getting some traction including good revenue v. market cap and a marketing and supply deal with Lafarge. Could this be a good industrial/construction stock in the making?
Thanks
Asked by Terry on April 29, 2024
5i Research Answer:

CVX is a producer of cellular concrete. It's stock has more than doubled over the last year yet it is sill a microcap at $50.77M. Revenue's have been growing at a very high rate while it also swung to profitability in the second half of 2023. Balance sheet looks fine with a small net cash balance at $0.2M. Cash flow is a small positive while free cash flows are negative. Management outlook was positive and noted that the company will continue its regional expansion, particularly in the US, where the cellular concrete market continues to experience strong growth. CVX is growing at a high rate and management expects continued profitability along with cash flows becomming positive. The small size makes this one very risky but it is worth watching to see if it can sustain growth, profitability and increase cash flows.