Opinions Bruce Campbell (2)
Grande West Transportation GroupBUS.VCOMMENTJul 26, 2017
Bruce Campbell (2)Stock price when the opinion was issued
As of Mar 26, 2021. Market Open.
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Buses may be electric, CNG, or clean diesel and electric buses are offered by the company.
Over the past five years, sales have shrunk by a compounded annual growth rate of 14.5%, while EBITDA and Net income have grown at a CAGR of more than 100% over the past five years. The company is expected to turn profitable in 2024.
While the balance sheet has improved over the year, negative cash flows and EBITDA make it less attractive compared to its peers.
We think some of this is priced in, however, VCM is also expected to grow at multiples of its current sales while slowing growth is expected for others.
There is still a long way to go before the growth materializes, and that's still an 'if' it does.
We would consider the name risky.
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Bruce Campbell (2)Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. The stock has seen an amazing recovery with business picking up. The move into EV was welcomed but the space remains competitive. It is not without risk, and to continue their EV projects, they will need capital. Expectations are high which adds additional risk. Unlock Premium - Try 5i Free
Stockchase InsightsBruce Campbell (2)
It comes down to contracts and orders. Now is a rebuilding year for them. They have to prove they can be profitable in a low-delivery schedule. Compare them to the larger NFI which has a larger backlog and overall business, though neither is doing well this year.
This makes 27.5, 30 and 32-foot buses, which are more efficient than running 40-foot buses on the same route. Traction has really started to gain in Canada. They’ve delivered 44 buses this year and said they are going to deliver 200, so production is going to have to be cranked up. He thinks they will get there. They just had an update and said earnings are going to be positive. They have a deal with a company out of the US that does manufacturing, so they have their “Buy America” certification now, which will help them get into the transit authorities. This could be a takeout candidate.