Hi there,
Evertz Technologies (ET) is a company that looks cheap for a tech company. It is trading at only 17.86 times forward earnings and 2.69 times sales. It is however, not a high flying growth stock like some of the other TSX-listed tech companies. In fact, current valuations are right inline with historical averages. The company has only averaged about 3% annual revenue growth and negative earnings growth (-0.73%) of the past three years.
It is also worth noting that the pandemic did impact the company. Sales dropped and it was forced to slash the dividend by 50% for a couple of quarters. Although it has since re-instated the dividend to pre-pandemic levels, it is a clear sign that their business was impacted and may continue to be impacted moving forward. Since there still exists considerable uncertainty around the pandemic, it is likely why ET has not recovered to pre-pandemic levels.
Over the next few years, it looks to be much of the same. Average revenue and earnings growth in the low, single digits. Worth noting, it also has mixed record against estimates. Over the past 12 quarters it missed 7 times by pretty large margins. Furthermore, ET didn't exactly have the best track record pre-pandemic with negative average returns over a five year period.
To be honest, there is nothing that stands out to me here and personally, is not one I would be interested in.
Mat