Contra Guys: Mattr Corp’s multi-year turnaround shows promise despite market setbacks

  • 📰 globeandmail
  • ⏱ Reading Time:
  • 63 sec. here
  • 3 min. at publisher
  • 📊 Quality Score:
  • News: 29%
  • Publisher: 92%

Streetwise News

Business Business Latest News,Business Business Headlines

The Toronto-based materials technology enterprise is successfully executing a multi-year transformation

How long does a corporate turnaround take? The answer varies widely – in an optimistic scenario, the answer may be a few years, while in pessimistic cases, the answer may be never. Accordingly, investors interested in transition candidates must have significant patience as well as a rigorous methodology for sussing out possible turnaround winners from losers..

which is the current assets divided by current liabilities – was regularly well over 2.0, debt was stable, and the share count had been flat for a decade. Insiders owned roughly 1.5 per cent of the stock at the time, and Turtle Creek, the successful independent asset manager based in Toronto, owned 17.8 per cent.

In late 2023, Mattr unveiled its post-oil-and-gas roadmap through 2030. The plan can be divided into two phases. During the first stage, the organization will spend more than $150-million in capex to build out, modernize, and optimize its production footprint by 2025. The executive team hopes these investments will increase annual sales growth by over 10 per cent a year through 2030, expand EBITDA margins by over 20 per cent, and be done with a free cash flow conversion rate of over 70 per cent.

Despite the pivot into growth sectors and the outlook through 2030, the stock has been in the doldrums for 2024, being roughly flat year-to-date. The second quarter saw top-line improvements, but earnings a share missed consensus analyst estimates. Moreover, the fact that two new production facilities came online was overshadowed by weak third-quarter guidance owing to a project deferral by a significant customer.

 

Thank you for your comment. Your comment will be published after being reviewed.
Please try again later.
We have summarized this news so that you can read it quickly. If you are interested in the news, you can read the full text here. Read more:

 /  🏆 5. in BUSİNESS

Business Business Latest News, Business Business Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Contra guys: This medical company’s business lines could soon be firing again on all cylindersUnited Guardian may have lumpy earnings and dividends, but it is well positioned to bring returns to shareholders
Source: globeandmail - 🏆 5. / 92 Read more »