Glen - As you can probably tell, I have previously done research on EVI. Some of the other numbers I have for EVI are: PEG = 0.97, growth = 63.8% (est FY98/est FY97), projected FY98 P/E = 24.6 (a little higher than others), last qtr surprise earnings = 14%, high analyst ratings (last time I checked anyway), the last 5 year P/E highs are (from 1992-96) NM, 28, 43, 32, and 43. From a purely fundamentals standpoint using the above data, you would conclude that there are probably better investments in this sector. The positives, I have previously already mentioned. I have read people state on the thread that EVI will triple in a year, but I believe that is being wishful (based upon the misleadingly low P/E). Other fundamental valuation methods I have seen employed for this sector include using a target valuation of 15X or 20X P/E by FY98 (obviously, EVI is above that). The other thing to consider is that in half a year from now that one time extraordinary earnings will drop off the ttm earnings thus having a temporary profound effect.
Is EVI a high quality company? (definitely) Are they overvalued? (maybe, maybe not) Will EVI triple in a year? (judge for yourself by looking at the PEG)
Best of Luck |
