Mirion Technologies (MIR), mcap=$1.6bn, price $7.50 vs $6.40

MIR pitch:
– 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.

MIR valuation:

– 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.

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