*Disclosure: I own shares in PSD.to. I am not a professional. Please do your own due diligence.
Price: $2.25
MC: 120 million CAD
EV: 115 million
Yield: 2.4%
1 year performance: +22% (not including dividends)
PSD reported Wednesday after the close. Results were in line of my expectations and the stock was flat. I recently reprofiled PSD, so go check it out if you want some more in depth discussion.
PSD guided for the quarter to land essentially where it did.
Quarter Recap
Revenue of 8.8 million vs 8.4 million last year
EBITDA of 6.2 million vs 6.6 million last year
Raised dividend 9% to 0.15 per quarter
Closing Thoughts
Not much to add here. There is little visibility quarter to quarter for PSD. There was no sales numbers mentioned in the press release so I’m not expecting a strong Q2. 2024 likely lands below 2023, but should be well ahead of 2022.
Valuation
As usual PSD is hard to value given the lumpiness. I think using 3 yr average for EBITDA and FCF is fair. As of right now PSD trading about 4x EV/EBITDA and 6x EV/FCF. Given the outlook and current activities levels, it’s probably priced about where it should be.
Thanks for reading.
Dean
* long PSD.to