Q: Can you comment on current valuation and outlook for Hrx.?
5i Research Answer:
HRX has had a big year so far, up 52%. This brings valuation to 17X earnings. The balance sheet remains very leveraged, with debt at 6X last year's cash flow. But 30% earnings growth is expected this year, and another 15% the following year. The last quarter was very strong and earnings were 58% better than expected. The sector outlook is good, and backlog rose 10%, to $951M. We think the short term outlook is quite good here, and the positive momentum likely to continue. Current valuation is still below its historical averages.