– Industry leader in mission-critical radiation measuring devices and services.
– 40-60% market share in the markets it participates in.
– The stock has been beaten down mainly due to quarterly guidance misses from component shortages and some canceled projects due to the Ukraine invasion.
– SPAC’s provenance, poor execution, and its terrible public market performance have led investors to trade it like a low-quality industrial business.
– MIR’s acyclicality, market position, and margins argue for a better multiple.
– Expected to revert to normalized earnings after aforementioned temporary pressures ease.
– The elevated order book indicates positive exposure to secular growth in nuclear power.
– Trades at 11x E2023 EBITDA of $193m.
– Higher quality industrial peers trade at 15-25x EV/EBITDA.
– Mirion should at least reach the low-end of this range implying a $10/share price target.
Exp. gain: 35% to $10/share.
Full write-up (free guest account required):
Mirion Technologies (MIR), mcap=$1.6bn, price $7.50 vs $6.40