Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
Author: itconsultant Three stars, 500 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 2353  
Subject: Re: Wayside Tech Group (WSTG) Date: 3/31/2012 12:46 AM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
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..

WSTG - WAYSIDE TECHNOLOGY GROUP.

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

Canada.

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.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

Feste Award Winner Announced!
Congrats to the Winner of the 2013 Feste Award!
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement