Q: I would appreciate an updated assessment of Mattr Corp., formerly known as Shawcor. Thanks!
5i Research Answer:
The last quarter was a bit mixed, and thus the stock has not done a whole lot this year (down 16%). The balance sheet has a bit of leverage (1.5X cash flow net), but is in significantly better shape than it was in prior cycles. It is expensive on current valution but very strong EPS growth is forecast for 2025 (more than 3X). It has seen a few broker downgrades since the quarter, but if it can execute on its growth plan in '25 we would expect investors to sit up and pay attention. It remains fairly cyclical so the economy does need to co-operate here. There has been a small amount of recent insider buying, which is positive.