Q: Dear 5i team.
I know these Qs are all asking for opinions, so appreicate your input on the following:
At what price does SPB look attractive for income and limited capital risk?
What % does Brookfield own of SPB and at what point do you think this gets cheap enough for them to take private?
What seems to be the problem with mgmt getting this business to achieve profitable growth, and create shareholder value?
Seems to me propane distribution and use business has many years of runway left in our lifetimes.
Appreciate your insights.
I know these Qs are all asking for opinions, so appreicate your input on the following:
At what price does SPB look attractive for income and limited capital risk?
What % does Brookfield own of SPB and at what point do you think this gets cheap enough for them to take private?
What seems to be the problem with mgmt getting this business to achieve profitable growth, and create shareholder value?
Seems to me propane distribution and use business has many years of runway left in our lifetimes.
Appreciate your insights.
5i Research Answer:
We think the current valuation looks reasonable to us. SPB’s EV/EBITDA is around 8.0x, at...