For a while SXE has maintained a strong balance sheet to address organic and inorganic growth options. COVID was a disruption in pursuit of the latter, but the Trivantage acquisition metrics suggest it has been worth the wait. The up to $53.5m acquisition is highly EPS accretive given it’s largely cash funded, and dovetails with SXE’s diversification strategy. The acquisition multiple (up to a maximum of 4.5x EBIT) is reasonable, and Trivantage adds to visibility and creates opportunities for cross-selling and additional margin capture. We maintain a BUY call on a blended valuation of $0.82 (prior $0.65).
To access the full report please log in under the Client Area at the bottom of this page.
Argonaut’s Client Area allows you to view delayed share prices, access Argonaut’s wealth of Research as well as create custom portfolios and set up company watch lists.
If you would like to access our research please contact us to create an account.
