Stock price when the opinion was issued
Canada's largest provider of frac sand. Demand for frac sand is quite high, especially with LNG coming on. Executing very well. Refinanced debt at lower rate, pushing it out to 2029. Easily an $18-20 stock in the next year. US and potential Canadian governments are much more pro-energy. No dividend.
(Analysts’ price target is $18.00)
EPS was $1.74 for the Q1 and it is buying back stock as well. The stock is exceptionally cheap but that has not prevented a 29% YTD decline. The balance sheet is a bit levered but nothing too concerning. Insiders own 14% and have been net buyers in 2025. It's interesting, but very small and cyclical. We would not add until there is some stabilization in share price.
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The stock is exceptionally cheap at 4X earnings but that has not prevented a 13% YTD decline. The balance sheet is a bit levered but nothing too concerning. Insiders own 14% and have been net buyers in 2025. It's interesting, but very small and cyclical. Certainly at its valuation some other companies might be interested but we doubt management would be. EPS is expected to surge this year, and rise 10% in 2026. Still, it has a mixed history of volatile earnings, including losses. Its small size is a drawback, but the stock is picking up steam, up more than 100% since the market's April lows. We would consider it OK, mainly because of the very low valuation, offsetting its other risks.
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