Update: Seneca's Q2 Earnings - 3.4% Sales Growth But Negative EPS. New Share Buyback And Acquisition
Martin Vlcek • Mon, Aug. 11
- Sales grew 3.4% Y/Y but EPS disappointed, being negative $(0.01) per share. The stock still trades at 8.32x P/FCF, though and continues to be undervalued.
- I reiterate my long thesis and keep my target price at ~$36, offering ~25% total upside within two to three years. Recent buyback announcement should provide the needed catalyst.
- The stock traded relatively flat since my thesis but was very stable. With no dividends in a hunt-for-yield market, the stock lacked the catalyst for value realization.