Q: Peter and His Wonder Team
I have been a loyal holder of this stock for years and of course am down a ton. I do realize the whole sector is down...
Please give me your assessment going forward. Is there any hope for this company ...any reason at all to be patient? Thanks...your assessments are always a big help!
I have been a loyal holder of this stock for years and of course am down a ton. I do realize the whole sector is down...
Please give me your assessment going forward. Is there any hope for this company ...any reason at all to be patient? Thanks...your assessments are always a big help!
5i Research Answer:
CFX has been on a steady downtrend. Revenue has been in decline over the last two years, free cash flow has gone negative and it has been operating at a net loss since 2019. Debt has been increasing as well and net debt is now at $87.4M. The industry is quite cyclical so in an upturn, CFX will do better. It is tough to be patient here and fundmentals have meaningully deteriorated over the years while the company has not done a good job in creating shareholder value historically. We are comforable letting go of this one.