Alloy with the unusual afternoon earnings announcement ahead of deadline. Quarter was solid, with revenue up 42% y/y at $7.6 million, EBITDA of $2.2 million, and EPS of $0.063 on a reported basis and $0.082 excluding non-cash amortization.
I think we'll see a bigger Q3 as the iron ore price ramp has really gathered steam. Both BHP and Fortescue are working on new production, as are others, and I think we could see another $9 million+ revenue quarter. That would be a nice increase y/y from the $4.9 million reported last Q3 (impacted by COVID).
Trailing twelve month EBITDA now at $10.3 million, adjusted EPS at $0.44. Both will improve next quarter as we lap the COVID impacted periods.
With an Enterprise value of $25.7 million at current prices, AYSI trades at 2.5x trailing EBITDA and 4.3x EPS excluding net cash.
Needless to say, these are too low relative to the potential here. Companies in this space trade at 6x to 8x EBITDA, implying upside to over $5 per share in terms of fair value. We'll see if we can get there...
