ADEN has performed quite well over the last year, up nearly 40%. The stock continues to be cheap at 9x forward earnings and pays a small yield of 1.4%. Revenues continued to decline but at a slower pace in the most recent quarter. Margins have expanded nicely and Q1 displayed a year-over-year EPS increase. Debt reduced over the previous year and the company recently highlighted that M&A will now be a key focus moving forward. National Bank noted, "The company expects to spend near $500 million on acquisitions, dividends, and share buybacks (implying near $450 million spent on M&A), and the company could internally fund all this if the timing of transactions is well-spaced." We think ADEN looks solid right now, and recent margin improvements are positive. Also, despite a tough operating environment, there are long-term tailwinds related to housing shortages.
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