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Colabor Group Inc.
Colabor Group Inc. (TSX: GCL) is a wholesaler and distributor of food and related products and operates in two segments: Distribution and Wholesale. The company distributes products under its brand labels (Menu, Menu Haute-Cuisine and Multi Choice) and other national brands.
Key Updates
Q3FY21 Financial Highlights:
Q3FY21 Income Statement Highlights (Source: Company Report)
Risks Associated with Investment
The imposition of restrictions by the national governments in order to curb the spread of COVID-19 might lead to lower sales volume.
Stock Recommendation
Adjusted EBITDA for 9MFY21 stood at CAD 18.340 million, lower than CAD 21.454 million in pcp. The above was primarily due to higher input costs. Moreover, the adjusted EBITDA margin was lower at 5.6% in 9MFY21, compared to 6.5% in pcp. The stock of GCL is available at a P/E multiple of 6.4x on an NTM basis, compared to the industry median of 13.6x. Considering the aforesaid facts and above rationale, we give a ‘watch’ stance on the stock of GCL at the last traded price of CAD 0.72 on November 29, 2021.
One-Year Technical Price Chart (as on November 29, 2021). Source: REFINITIV, Analysis by Kalkine Group
*The reference data in this report has been partly sourced from REFINITIV.
Disclaimer
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