Q: Looking for updates on these three. As usual would think the possibility of higher returns comes with more risk…how would you rank them for total return 3-5 years?
5i Research Answer:
We would rank: PD, PSI, ESI.
PD is very cheap now and we like it more than before as it has improved its balance sheet. It still has debt, but it is far less risky than before. 2025 estimated growth looks really good. PSI is very cheap at 9X earnings. Growth is much more muted, but it has net cash and we would consider it safer. ESI is the most expensive on valuation and still has a ton of debt, making us far less interested. Growth looks good, but in a downturn its debt will once again worry investors.