Tedmel
March 24, 2022, 1:03pm
2864
kettunen:
Qualtek builds infrastructure and provides services around it. So, it’s not some hype / high-tech / 0-revenue company, but a company that has been operating since 2012 with a history of real revenue and cash flow.
Large operators as clients, 5G construction starting in a big way, solar and wind power installation, etc.
2-year backlog of $1.7B, which by itself corresponds to the 2021E revenue forecast of $818M and on top of that, already some growth for 2022.
Significant government budget support coming for infrastructure.
Several acquisitions 2018-2021.
EV $828.7M → P/S ~1.01 2021E, so it doesn’t sound very expensive from that perspective.
In 2020, there were large one-off expenses, which significantly impacted the result.
A larger acquisition is coming before the merger, for which pre-PIPE financing of $44.4M has been secured.
I’ve latched onto this now; there was a rather aggressive redemption, and then the price dropped by almost 80%. In my opinion, the valuation is currently absurd.
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