“We are resuming coverage of FA Capital after exiting a period of research restriction. Yesterday FA Capital completed its strategic review and chose to refocus the Company on a single primary business – its national mortgage brokerage franchise platform called Dominion Lending Centres (DLC). FA Capital has entered into a letter of intent to purchase the 40% minority stake in DLC it did not already own for ~$75.8MM including 41.0MM FA Capital shares at a deemed price of C$1.75 per share and a C$4MM, 6% sellers note. The deal adds about C$8MM of attributable EBITDA (12 months to and equates to ~9.5x TTM acquired EBITDA. It also cancels the distribution bonus the sellers have on growth-related DLC cash flow.”
According to TipRanks.com, Atkinson is ranked #109 out of 4878 analysts.
The word on The Street in general, suggests a Moderate Buy analyst consensus rating for Founders Advantage Capital with a C$3 average price target.
Founders Advantage Capital’s market cap is currently C$66.44M and has a P/E ratio of 0. The company has a Price to Book ratio of 0.68.
Founders Advantage Capital Corp. is an investment company, which engages in the acquisition of controlling equity interests in the middle-market private companies with strong cash flows, and proven management teams. It operates through the following business segments: Franchise, Consumer Products & Services, Business Products & Services and Corporate.
The company’s shares closed on Friday at C$1.63, close to its 52-week low of C$1.62.