Earnings Report for NCS Multistage Holdings (NCSM)

A quick look at NCSM's most recent earnings and valuation

I haven’t seen any new, compelling deep value stocks in my screening the past month. That’s to be expected sometimes and comes with the territory of looking for true value in the pits of the market, where stocks sell for $.50 on the dollar.

Fonar (FONR) Valuation Update

My most recent net tangible asset deep value idea, Fonar (FONR) continues to look more compelling as it just entered into true net-net territory. Net current asset value is $88.6 million or $14.00 a share. The current stock price is $12.31 and continues to downtrend. I still want to wait until their earnings report on May 14th to see if it can provide any catalyst. Even if it continues to sell-off, a cigar-butt net-net with such free cash flow generation is definitely a compelling one.

NCS Multistage (NCSM)

In January I put out NCS Multistage (NCSM) as a deep value pick. This past week NCS Multistage Holdings (NCSM) reported a great quarter. They had strong sales growth of $50 million, 14% YoY (year over year) growth, exceeding the top end of guidance.

This was the highest quarterly revenue since the first quarter of 2020. This came even with a 6% decline in revenue from the US market from project delays. The growth came from Canada, the Middle East and the North Sea.

Gross profit margin increased to 43.7% from 40% YoY. Net income was $4.1 million, or $1.51 per diluted share, for the quarter, compared to net income of $2.1 million, or $0.82 per diluted share, in last years quarter. They also paid down long-term debt to $5.37 mil vs $6 mil in the previous quarter. They say, “Going forward we expect that the Company will continue to see modest revenue growth through full year 2025 despite the threat of increasing tariffs.”

NCSM net tangible asset value increased this quarter from $91 mil to $95.2 mil or $37.50 a share. The stock is currently trading at roughly an 8.5% discount to NTAV at $34.32 a share as of Fridays close.