Mti Wireless Edge Share Discussion Threads

[049balt] 23/4/2024 17:20

This company is so undervalued that I think it will be taken private. Their time as quoted company has been a disappointing one but the market is not interested in an Israeli company with such a diverse portfolio.

[2magpies] 06/4/2024 09:17

On the other hand, rivaldo, if they didn't buy their own shares, where would the share price be now?

'Cos no one else seems to be buying! (been like that for a very long time)

I think it would be languishing in the .20's (at which point a bid would land, possibly?)

[rivaldo] 04/4/2024 07:30

Today's RNS shows 100,000 shares bought back at just over 46p, following a further 50k yesterday. MWE now hold 833,000 shares in treasury, so this buyback programme has accelerated markedly. Which is hopefully a sign that trading is continuing to go rather well.

[rivaldo] 02/4/2024 12:27

Shore Capital reiterate their 80p target today, and conclude as follows:

"Outlook and valuation:

As highlighted above each of the divisions has growth drivers with, in our
view, Mottech well placed to potentially see much stronger demand than we forecast for its water management and control software. Typically, this improves the efficiency of irrigation systems, while reducing the cost of operating them. The Antenna division is likely to benefit from the rollout of 5G across the world as it already supplies seven of the top ten operators with its technologies and as illustrated by today’s contract win is well-placed in defence as well as for the rollout of 5G in India, in particular. Similarly, we would also expect to see good demand for the defence-related products and services of Summit/PSK.

We have an 80p fair value on the basis of a DCF analysis, which is more than corroborated were MTI to achieve an FY24F EV/EBITDA multiple of 12.8x (the
average of our peer group)."

[rivaldo] 02/4/2024 07:13

This morning's $1.2m repeat contract win for military antennas is good news for this year's figures, but perhaps even more interesting is this comment:

"We see more opportunities in this specific area of conformal antennas, some for new development projects and some for use in existing products, but all resulting in our technology being used in more applications"

[rivaldo] 20/3/2024 11:13

Allenby Capital have updated on MWE - they have a 75p price target.

With a 7.2p per share cash pile, they forecast 4.56c EPS this year and a 3.3c dividend.

That's an ex-cash P/E of only 11.6 and a 5.3% dividend yield:

[robsy2] 20/3/2024 07:23

Yep. They are smart operators.
R

[rivaldo] 20/3/2024 07:09

Good to see the share buybacks continuing, with MWE evidently considering these higher prices to still be good value:



If MWE were to parcel off the now 583k shares in treasury to institutional buyers as previously they'd make a nice profit of probably £80k-£100k.

[rivaldo] 19/3/2024 11:43

Breaking upwards now at new 9-month highs.

[rivaldo] 14/3/2024 12:00

Good to see the share price rising again on reasonably small volumes, and buyers paying the full 45p offer price - hopefully signs that there's not much stock around.

[rivaldo] 13/3/2024 09:54

Having listened to the presentation, here's a few points I thought were interesting (in no particular order - any corrections welcome!):

- MWE have had a "very strong" start to 2024
- defence-related revenues were up to 44% of the total last year
- MWE are one of only 2 competitors in India for 5G backhaul business, as one other was disqualified last year for concerns over quality
- the October 7th attacks caused much destruction of not only telecoms equipment and towers, but also agricultural equipment and irrigation systems. Orders to replace these are now coming through
- more fountain projects are likely, firstly in Israel and then internationally. These have very nice recurring income
- Israeli defence budgets are being "increased dramatically"
- all R&D is expensed, not capitalised
- MWE are ready to look at more acquisitions, which will only be profit-enhancing
- the dividend has grown 110% since 2018

[rivaldo] 12/3/2024 08:42

MWE have just been tipped by the Investors Chronicle's Simon Thompson:



"MTI is a smart play on the defence spending boom

This technology group is rated on a single-digit earnings multiple even though it is delivering double-digit profit growth, and offers a 6.1 per cent dividend yield

March 11, 2024
by Simon Thompson

Annual pre-tax profit up 12 per cent to $4.8mn
EPS rises 9 per cent to 4.58¢
Net cash of $8.1mn (9.2¢)

The latest results from Israel-based MTI Wireless Edge (MWE:40p) highlight the benefits of diversification as growth from the technology group's antennae and water management systems units more than mitigated a weaker performance from its electronics division.

The antennae business sells 'off the shelf' flat and parabolic antennas as well as custom-developed antenna solutions to a range of commercial and military customers. Buoyed by a sharp rise in military sales, divisional operating profit surged from $0.3mn to $0.8mn. Current events around the world suggest that requirements for military equipment will continue to grow in the coming years as western governments increase their defence budgets, too. Moreover, the conflict in the Middle East has triggered an increase in demand that should lead to higher stock levels of all military equipment being maintained by the Israeli government going forward. Defence-related work now accounts for 44 per cent of group sales.

etc"

[049balt] 11/3/2024 15:11

Amazing recovery today

[igoe104] 11/3/2024 12:28

Todays investor presentation.

[2magpies] 11/3/2024 12:13

yes, that is a good dividend already.

However, does the sharebuyback have to be so extreme?

What is the tinking?

[rivaldo] 11/3/2024 09:28

Shore Capital have an 80p fair value here.

They note that "FY23A results were slightly ahead/in line with expectations".

They've maintained their forecasts for this year and forwards, which they note are firstly conservative and secondly exclude any potential acquisitions from the cash pile.

They go for 4.5c EPS this year, with a 3.3c dividend.

Net cash is forecast to rise to $9.3m - around 20% of the m/cap.

They conclude:

"Outlook and valuation:

Each of the divisions has growth drivers with, in our view, Mottech well
placed to potentially see much stronger demand than we forecast for its water management and control software. Typically, this improves the efficiency of irrigation systems, while reducing the cost of operating them. The Antenna division is likely to benefit from the rollout of 5G across the world as it already supplies seven of the top ten operators with its technologies and is well-placed in both defence and India. Similarly, we would also expect to see good demand for the defence-related products and services of Summit/PSK. We have an 80p fair value on the basis of a DCF analysis, which is more than corroborated were MTI to achieve an FY24F EV/EBITDA multiple of 12.8x (the average of our peer group)."

[igoe104] 11/3/2024 09:24

Dividend is decent anyway, four figures plus payout for me to look forward to..

[2magpies] 11/3/2024 08:35

Isn't it better to have a much bigger dividend than to have the peperpetual buyback thingy?

[rimau1] 11/3/2024 07:59

I think FY23 results are a slight miss due to the impairment and net cash is lower but we could argue its all priced in at these levels. Great news on an expanded buyback.

[rivaldo] 11/3/2024 07:31

Yep. That's 3.6p historic EPS, with PBT up 12% and EPS up 9%. Which with the $8.1m cash pile puts MWE at 36.5p on a rather cheap valuation on a single figure P/E on an ex-cash basis.

Especially given the confident outlook for this year in all three divisions:

"The macro trends for all three remain positive: from the continuing roll-out of 5G cellular connectivity; to tackling the growing global issue of water scarcity; and the significant increases in local and international defence spending."

"Overall, MTI remains well positioned across all three divisions, with each division backed by strong macro trends underpinning their future prosperity. The first two months of 2024 have been in line with internal expectations and judging from the pipeline of potential opportunities, the Group is well placed, supported by a strong financial platform, to continue to seek to expand through a mix of acquisition-led and organic growth."

[zingaro] 11/3/2024 07:25

igoe104 - agreed

[igoe104] 11/3/2024 07:10

Steady performance, which is very acceptable under the circumstances..

[rivaldo] 05/3/2024 08:28

:o))

The directors etc bought 350,000 shares at 31.5p in late November, so hopefully that's another clue that the results and outlook will be nicely in line.

[scepticalinvestor] 05/3/2024 07:25

Have any of the BoD acquired any treasury shares on the cheap again?

[rivaldo] 05/3/2024 07:20

Results will be on March 11th per today's RNS.

Encouragingly - as with last year - there's no specific trading update, so under disclosure rules the assumption to be drawn is that MWE are trading in line with expectations (as they were last year).

For reference, expectations are for:

- 4.2c EPS, or 3.3p EPS
- $8.2m net cash, or 20% of the m/cap
- 3.2c dividend, or a 7.1% divi yield