Q: Can you comment on DRX from a valuation and prospect point of view.Is their order backlog significant?
5i Research Answer:
DRX remains cheap at 12X earnings, even with recent gains. Still, this is near the high end of its historical range, but growth has accelerated recently. Backlog is $510M, which is well more than a year's revenue. It remains in a net cash position and we continue to like its prospects, with decent growth expected for the balance of 2024 and in 2025.