Radiant Logistics: Cheap At 8.5x EV/EBITDA In A Tough Market (Rating Upgrade)

Gold Panda
7.29K Followers

Summary

  • In my view, the company booked a decent EBITDA of $5.5 million in Q2 FY24 amid a weak US freight market.
  • It has often traded at 7-10x EV/EBITDA in the past decade and is starting to look cheap compared to FY18 when it had a similar EBITDA margin.
  • In addition, the company is trading at a historically low price to tangible book value multiple of 2.8x.
  • I think that the valuation could improve to about 10x EV/EBITDA by the end of 2024.

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champc

Investment thesis

I've written a total of 6 articles on SA about Radiant Logistics (NYSE:RLGT) and the company is on my watchlist. The latest article was in November and back then I said that Radiant Logistics

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This article was written by

7.29K Followers
Gold Panda has been working as an M&A analyst for over a decade. He's been investing since 2007. Preferring value to growth, he tends to take a relatively conservative approach in his investing. His focus is on small and micro-cap stocks, which he believes is the area that offers the greatest opportunity to exploit market mispricings.

Analyst’s Disclosure:I/we have no stock, option or similar derivative position in any of the companies mentioned, but may initiate a beneficial Long position through a purchase of the stock, or the purchase of call options or similar derivatives in RLGT over the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

I am not a financial adviser. All articles are my opinion - they are not suggestions to buy or sell any securities. Perform your own due diligence and consult a financial professional before trading.

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