what a golden opporunity to buy, page-18

Boart is now trading at record recent lows:
- If 1H adjusted profit is multiplied by 2, you would get an adjusted EBITDA of $160m. MC is around $200m. Therefore, Boart could be trading at around 1.25 x EBITDA.
- Margin pressure (decreased from 28% to 19%) has been felt by Boart due to competition and falling commodity prices, however costs have been well controlled on a whole with EBITBA margin down from 19% to 11%
- MC to sales ratio of less than 0.15 (well under the industry average of 0.42)
- Price to book ratio very low (now that $184m of intangibles were written down), price to NTA ratio is around 0.4 following the sell off yesterday.
- $145m in bank facility undrawn with only $100m of debt due in the next 2 years.
- Still well covered from a bank covenant perspective (debt is 2.8x EBITDA when 4 x EBITDA is max)
- Further cash received subsequent 30 June from sale of US assets

With rising commodity prices and one-off charges out of the way, Boart may surprise in the second half.

Please supplement with your own research.