MTI Wireless Edge - Strong progress continues
MTI Wireless Edge (LON:MWE) reported results on 11 March for the full year to 31 December 2018. The results show continued strong progress following the August 2018 merger of MTI Wireless Edge with MTI Computers. Revenues increased by 35%, or 2% organically, operating profit +21% organically, and earnings per share (EPS) +14%. The statement also highlights a healthy order backlog and pipeline of opportunities going into 2019.
The company has compelling growth opportunities in all four operating divisions, including 5G wireless systems in Antennas and the global demand for smart irrigation driving Water Solutions. On page 2 we provide an overview of the divisions.
The share price has increased 21% from its lows in January, but remains on a discount valuation, with a 2019e price/earnings multiple of 7.7x and a dividend yield of 6.5%. We consider these metrics surprisingly low for a company with net cash balances and a strong growth outlook.
Data in the table is shown on a pro-forma basis for 2017 and 2018 (merger applied for 12 months) and using an exchange rate of US1.30 to the pound to calculate a dividend yield.
Quick facts: MTI Wireless Edge Limited
Price: 34 GBX
Market Cap: £29.88 m
NO INVESTMENT ADVICE
The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...
In exchange for publishing services rendered by the Company on behalf of MTI Wireless Edge Limited named herein, including the promotion by the Company of MTI Wireless Edge Limited in any Content on the Site, the...FOR OUR FULL DISCLAIMER CLICK HERE
LEGAL NOTICE – IMPORTANT – PLEASE READ:
Proactive Research is a trading name of Proactive Investors Limited which is regulated and authorised by the Financial Conduct Authority (FCA) under firm registration...FOR OUR FULL DISCLAIMER CLICK HERE