Q: Hello,
Do you think ADN is a buy and why? Can you please also comment on their payout ratio and debt level. Would it be your favorite in the sector? Thank you,
Do you think ADN is a buy and why? Can you please also comment on their payout ratio and debt level. Would it be your favorite in the sector? Thank you,
5i Research Answer:
ADN has been performing well and has generally been in an uptrend since 2023. It pays a good dividend yield of 6.4%, analyst estimates have been rising, margins are good, and it trades at an OK valuation of 16.9X forward earnings. It is small ($317M market cap) and not without its risks, but we think it looks good here for an income play, and it has been diversifying its revenues. We would be OK with a small position, but for a more liquid name we also like WFG.