MSV 5.00% 42.0¢ mitchell services limited

Ann: Update - Notification of buy-back - MSV, page-2

  1. 1,213 Posts.
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    Interesting developments in the Australian drilling industry with Perenti in a merger/buyout with DDH1 yesterday. The agreed price is at 3.4 x EBITDA which is quite low. Multiples of 5x EBITDA would be considered the norm in a favourable industry backdrop (which we have). A similar multiple applied to MSV (without having seen the FY 2024 4th Qtr results) of say normalised EBITDA at $40million would put a price of $136million less a reduction for debt to say $120million. The CEO has said the business should be earning EBITDA $50million. Nathan Mitchell has publicly stated up to $60million in the current market conditions. Taking the lower number, by EOFY 2024 they are targeting a reduction to $15million in debt on the balance sheet. In that case MSV on the DDH agreed multiple would be worth around $170million....that's around 77c a share. There's a lot of potential value in the business if they get it running efficiently & as stated the multiple DDH will be transacted upon is quite low historically.


 
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Last
42.0¢
Change
0.020(5.00%)
Mkt cap ! $89.70M
Open High Low Value Volume
41.0¢ 42.0¢ 41.0¢ $73.93K 178.2K

Buyers (Bids)

No. Vol. Price($)
3 64690 40.5¢
 

Sellers (Offers)

Price($) Vol. No.
42.0¢ 17019 3
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