*Disclosure: I own shares in MCB.to. I am not a professional. Please do your own due diligence.
Price: $2.17 CAD
MC: 62 Million CAD (fully diluted)
EV: 47 Million
Yield: 3.7% (after dividend increase)
1 year performance: +66%
MCB reported yesterday. Results were largely in line with my expectations and the stock ended the day up 11%. It certainly has come a long way since the net-net I purchased before covid.
Quarter Recap
Revenue came in at 19.7 million vs 18.3 million last year.
EBITDA was 4.0 million vs. 3.7 million last year.
Backlog sat at 22.5 million at the end of Q4 2023.
Bookings at 18.0 million.
They mentioned in the MD&A that bookings so far in Q1 2024 have been in line with Q4 2023.
Doubled the dividend to 0.02/share.
Closing Thoughts
Not much to report with MCB. They are chugging along. Their Digital Technology Roadmap should should start contributing to revenue in a more meaningful way later in 2024 or 2025.
Though the backlog is down from the peak in Q2 2022, I am not worried at this point. I would like to see inventory growing slower than revenue for 2024. They mentioned the build out of inventory to meet demand, so maybe it should stay at these levels.
I was happy to see the dividend increase. I don’t they would have upped the dividend (or at least by this much) if they are worried about activity levels in 2024. They repurchased 1.7 million shares in 2023. The NCIB that was announced in August of 2023 is completed. I would like to see another NCIB initiated. Even with the low liquidity of the shares, having the NCIB to support the volatility is positive in my opinion.
Cannell Capital has been consistently selling and still owns nearly 2 million shares, so having some sort of block trade arranged should help the share price given the valuation.
MCB is trading a tad under 4x EV/TTM Ebitda.
I continue to hold as part of my OFS basket. MCB brings some nice diversification to the mix to the basket.
Thanks for reading.
Dean
* long MCB.to