- USAP is positioned to benefit from an aerospace recovery and supply chain restocking cycle, which should produce significant cash flow leverage over the next several years.
- The equity is trading only modestly above the liquidation value of its inventory, and at a substantial discount to tangible book value.
- A below peer 7x EBITDA multiple implies USAP would be valued 60% higher, with a return to its historic tangible book value of 1.2x, valuing the company +3x at $30.
For further details see:
Universal Stainless & Alloy Products: Aerospace Recovery Play Trading At Liquidation Value