Company Website:
http://www.cemtrex.com
FARMINGDALE, N.Y. -- (Business Wire)
Cemtrex Inc. (OTC:CTEI) was recently highlighted in an article by Payal
Gupta of Seeking Alpha. The following are highlights from the recent
feature:
In a world where investors are used to hearing about heavy premiums for
acquisitions, Cemtrex seems to have gotten a deal in buying ROB Group as
the company was languishing financially and needed an exit strategy due
to an insolvency debacle because a customer defaulted on a large
payment. With favorable, non-dilutive terms, via a bank loan that
carries only 3% interest and a 17-year repayment term, Cemtrex came in
and bought the company at roughly half of ROB Group's book value. To
avert any such payment debacle from happening again, Cemtrex has put in
place a policy that all orders and receivables are covered by a major
insurer.
The fastidious acquisition translated to Cemtrex generating $47.65
million in revenue in the 12 months ended September 30, 2014, a 249%
increase versus $13.67 million in the year prior period. Net income was
up a stunning 834% to $2.69 million, or 7 cents per share, compared to
net income of $288,497 in the same period a year earlier.
Shares of CTEI have bounced around lately between $0.60 and $0.74, but
even taking the high end of that range equates to a market
capitalization of only $30.04 million. Moreover, Cemtrex can be
evaluated in a way many OTC companies can't: through a TTM
price-to-earnings ratio, which at $0.74 equates to a P/E ratio of 10.6:1
for Cemtrex. At $0.64, the P/E ratio drops to 4.7:1, according to data
from QuoteMedia.
Looking at the Pollution & Treatment Controls industry shows an industry P/E
ratio of 64:1. Now, to be fair, that figure is skewed upward by some
foreign companies, but looking directly at US-listed comparables shows
only MFR, Inc. (NASDAQ: MFRI)
has a P/E ratio lower than Cemtrex at 4.9:1, in part because MFR swung
to a net loss of $0.4 million in Q3 compared to a net profit of $7.4
million in the year prior quarter as sales decreased 24% to $43.8
million. Trading Tuesday at $7.41, shares of MFRI are off a March high
of $17.44 by 57.5%. P/E ratios for other U.S. companies in the pollution
treatment industry generally range from around 15:1 - 25:1.
The P/E ratio for the Industrial Electrical Equipment industry is 25.7:1,
with a similar structure to the Yahoo list and most in the area of 20:1.
Yahoo has Cemtrex officially listed in the smaller industry of
Industrial Equipment and Components where the industry P/E is 127.1:1.
Even the broader sector of Industrial Goods has a P/E ratio of 19.9:1.
Point here is to take a look at several surrounding industries, rather
than the IE&C industry exclusively to demonstrate the valuation that can
certainly be construed as on the low end compared to peers.
Cemtrex is building a marquee company specializing in advanced
industrial and manufacturing technologies. The balance sheet is clean,
albeit light on cash ($1.3 million in cash and equivalents), with $4.6
million in receivables as of September 30 and shareholder equity of
$3.28 million. That equity has reversed course from a deficit of
$916,000 in four years against the backdrop of 1,000% growth in revenue.
With domestic and international operations, Cemtrex's business is
scalable and ultimately still running well below capacity as it ramps up
sales in very diverse, multi-billion dollar markets. The business model,
high insider holdings (73%), growing profitability and customers such as
Siemens, BP, Shell, General Electric, BASF, DuPont, Corning and
Mitsubishi (to name a few) help mitigate risk and identify Cemtrex with
class as an anomaly in the OTC world. Sporting a somewhat humble
demeanor, the company will not skirt under the attention of Wall Street
forever.
To see the entire article please visit: http://seekingalpha.com/article/2757075-profitable-with-growing-sales-cemtrex-can-shed-its-microcap-suit
About Cemtrex, Inc.
Cemtrex, Inc. (CTEI)
is a diversified technology company that provides a wide array of
solutions to meet today's industrial challenges. Cemtrex, through its
wholly owned subsidiaries provides electronic manufacturing services of
custom engineered printed circuit board assemblies, emission monitors &
instruments for industrial processes, and environmental control & air
filtration systems for industries & utilities. www.corporate.cemtrex.com
Safe Harbor Statement
This press release contains forward-looking statements. Actual results
could differ materially from those projected in the forward-looking
statements as a result of a number of risks and uncertainties.
Statements made herein are as of the date of this press release and
should not be relied upon as of any subsequent date.
Contacts:
Investor Relations
Cemtrex, Inc.
Saagar Govil, 631-756-9116
Source: Cemtrex Inc.
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