Alaris Equity Partners Income Trust (AD.UN-T)

Management good at diversifying. A recent Top Pick. Growing fairly well over the last number of years. Previous years did see some stumbles. Internal rates of return on investment have been extraordinary. CEO an extremely good manager. Impressive yield over 8%, which should increase as cashflows do. More assets in US than Canada. No hesitation in recommending.

EPS of 74c beat estimates of 59c. Revenue of $51M beat estimates by 7%. 
EBITDA of $53M beat estimates by 29%. Revenue rose 36% but earnings did fall year over year. 
The forecast calls for a revenue run rate 2023 of $151M. This is about $6M less than estimates. 
Payout ratio was only 39% due to less cash taxes paid. 
We are comfortable here and consider the results OK. The stock is very cheap. 
The decline today is likely the weak market and profit taking more so than disappointment on the quarter.  
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Has been a top pick before, but has had its ups and downs. Now, they have a good balance of companies they're invested in. Can payout their payout even in a downturn, and they payout is much lower around a payout ratio of 65%. They have been investing in common stock of some companies, which has worked, and they could be investing for third parties. Pays a tremendous yield of 7%. This trades around book  value and cash flows are stable that will grow. So, he'd like to see the yield decline over time.

(Analysts’ price target is $21.00)

Billy Kawasaki’s Insights - Billy’s most-liked answers from 5i Research. It is expanding its portfolio, which is overall positive. Good for income, but higher risk. It has cut dividends in past cycles. Royalty rates are high, which leads to higher dividends. Has grown over time and is good for higher risk income. Unlock Premium - Try 5i Free