Analysts Urge Selling Gibraltar After 10.3% Slide on $1.37 Billion Debt
Updated
Updated · Yahoo Finance · Aug 15
Analysts Urge Selling Gibraltar After 10.3% Slide on $1.37 Billion Debt
1 articles · Updated · Yahoo Finance · Aug 15
Summary
$49.10 Gibraltar shares are still a sell, analysts say, arguing the six-month drop has not created an attractive entry point because the company’s fundamentals remain weak.
3.8% annualized revenue growth over five years and 3% EPS growth show sluggish operating momentum, leaving the industrial company short of sector growth expectations.
$1.37 billion of debt against $15.15 million of cash is the bigger concern: Gibraltar’s net-debt-to-EBITDA ratio stands at 6x, a level analysts say raises refinancing and downgrade risk.
11.4x forward earnings looks reasonable after shareholders lost 10.3% in six months, but analysts say the balance-sheet risk still outweighs the valuation appeal, especially with the S&P 500 up 13%.