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My notes from 30 min check. No position. Decided against it purely becoz i have many stocks that have a customer concentration risk. This is another one like that..


IT RESELLER / Distributor.

Wayside Technology Group, Inc. is an information technology (“IT”) channel company. We resell software and hardware developed by others and provide technical services directly to customers in the United States and


sales of hardware and peripherals represented only 4%

The Company had three customers that accounted for more than 10% of total sales for 2011.

For the year ended December 31, 2011, CDW Corporation, Insight and Software House International accounted for

14.0%, 11.0% and 10.5%, respectively,

Our top five customers accounted for 42%, 44%, and 36% of consolidated net sales in 2011, 2010 and 2009, respectively.

q4 is big for them. 1/3 of profit. 43 cents.q1 is weakest.

Shares : 4.7
Price 13.5
Market cap 64m

cash 9.2 + 5.3 = $14.5m
Cash per share = $3.1
ev = $50m

Wc = 65 - 46 = 20m ( includes $14m of cash)
ppe = 0
ic = 20m

ebit = 8.6m

roic = ebit/ic = 8.6/20 = 43% pre tax.

ev/ebit = 50/8.6 = 5.8x! not expensive. not dirt cheap..reasonably cheap.

NI 5.5m
EPS $1.2

P/E = 13.5/1.2 = 11x.. and with extra cash

P/E ex cash = 8.6x!

eps GROWTH last 3 years 0.65, 0.98, $1.2 ...20% or more
Sales growth 146m -> 206m -> 250m!! wow. 25% or more.

FCF = $5.5m or $2.5m if u count for wc...recivables always more than payables by 3m

buyback 1.5m
dividend 3m
total return $4.5m (7% yield on market cap)
On EV of $50m, its 9% yield.

P/FCF = 64/5.5 = 11.6x
EV/FCF = 50/5.5 = 9x reasonably cheap.
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