Cam,I don't see this stock as being very cheap. I personally...

Cam,

I don't see this stock as being very cheap.

I personally wouldn't use EV/EBITDA to get an indication of relative price levels because this is a capital intensive business.

It is currently trading at 10x EBIT by my calculations. (Debt of 1.25b + MC of 1.25b = 2.5b EV) and EBIT of 0.25b.

The one advantage of this company as you said is that it is arguably trading at the bottom of its earning cycle. Some may argue that it is more structural. I haven't looked into it in enough depth to comment further.

My thoughts are 10x EBIT is too much for a company that is most likely going to experience low growth over the next few years. There is nothing to suggest that they can grow at 5+% in the long-term for me (no sustainable competitive advantage comes to mind).

(PS: My calculations are pretty rough, please correct me if I have missed something).