Professional
Added to YB: 2024-02-20
Pitch date: 2024-02-19
CTS.TO [bullish]
Converge Technology Solutions Corp.
+35.07%
current return
Author Info
Idea Brunch is an interview series where great off-the-beaten-path investors share their best ideas and insights about their research process. Yellowbrick users get a 20% discount for life
Company Info
Converge Technology Solutions Corp. provides software-enabled IT and cloud solutions. Its products and services include advanced analytics, artificial intelligence (AI), application modernization, cloud platforms, cybersecurity, digital infrastructure, and digital workplace offerings.
Market Cap
CAD 1.1B
Pitch Price
CAD 4.43
Price Target
9.10 (+52%)
Dividend
N/A
EV/EBITDA
9.62
P/E
-6.66
EV/Sales
0.50
Sector
IT Services
Category
turnaround
White Falcon Capital: Converge Technology Solutions Corp. - $CTS.TO
CTS.TO fell from C$12 to C$2.50 on halted M&A, high debt & missed margins. Now C$4 (7.2x EV/EBITDA), integrating past buys for mid-2024 cost cuts. Refocused on cash collections vs invoicing. 2024 outlook: better margins, FCF to cut debt & buyback. Upside to 15x P/E.
Read full article (2 min)