Inspecs Group Share Price (SPEC)

At last,finally upward tragectory still way undervalued .

If you have time to have a read of the presentation you will realise the potential which is locked up in the stock

https://www.inspecs.com/sites/inspecs-group-plc-v2/files/Year-end%20Results%20Presentation%202023.pdf

There is a significant amount of value tied up here yet to be realised.

Huge volume here yesterday, with large volume selling. Perhaps large seller capitalising on a good update and strong buying pressure? If so and seller cleared, this should continue shooting up. Relatively high volume again this morning

Taking the RNS at face value....

Sales - Up (albeit primarily thanks to +ve currency movements)

Gross Profit - Up - both in terms of cash and %age.

EBITDA - Up

PBT - No brackets!.

Cash flow - significantly up.

Debt - Under control. Debt to EBITDA ratio is c1.3x

So, why does a company making £18m EBITDA, and converting 90%+ of this into cash have a valuation of just £52m? In my view more conventional metrics would push this north of £100m.

Much of the difference between EBITDA and PBT is going on amortisation of previous acquisitions (Non-cash item), and depreciation which will unwind, albeit they have the costs of setting up Vietnam factory to digest still. Interest charges are up, but indicators are that rates have peaked.

So, the valuation should be rebalanced provided that they continue to chew through the DA, and deliver on the cash conversion, so that they can re-instate the dividend, which should bring back the demand for the stock.

Real opportunity to see this double in price, and that's before any growth is factored in.

One danger whilst the price is so low, is that somewhere a PE house snaps this up and takes it private at a bargain price.

All IMO. - please always DYOR!.

An update that makes a mockery of the 50m market cap. Should see good momentum going forward from here, provided the forward guidance remains on track