2024-03-13 09:22:39 ET
Summary
- The company booked EBITDA of $5.3 million in Q2 FY24 despite seasonality and a slowdown in some of its markets.
- In addition, Webco Industries has strengthened its balance sheet and net debt stood at $80 million at the end of January.
- In my view, EBITDA seems to be stabilizing at about $40 million per year and the valuation of the company could improve to 6x EV/EBITDA in the coming months.
Investment thesis
I've been looking for buying opportunities in the steel products sector over the past few months and in February 2024, I opened a position in Canadian steel wire and wire products maker Tree Island Steel ( TWIRF ) ( TSL:CA ). Another name that recently caught my attention is Webco Industries ( WEBC ) and I think this could be a good time to talk about this company considering the Q2 FY24 financial results came out on March 5....
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Webco Industries: Decent Q2 FY24 Results, Trading At Below 5x EV/EBITDA