IDEAS: With revenues of $50 million plus, Caldwell Partners International (TSX:
CWL) will now be on the watch list of strategic buyers which could value the
stock at $2.30 and higher.
share price accumulation target of $1.30 for Caldwell Partners International
Inc. was reached on July 18, 2014. For the record, we do not revise share price
targets for our Investorfile Top Ideas - Small Cap Value Stocks. We have
positioned our blog to be one of the first providers of a pragmatic perspective
of a small cap company stock's potential worth, where there may be uncovered
value that has been largely overlooked by the investment community.
a year-over-year revenue increase of 30% in Q2, Caldwell Partners International
Inc. (TSX: CWL - $1.26) posted another strong quarter in fiscal 2015. But what
has gone unnoticed: In the last 12 months this Company has generated about $50
million in sales, an annual revenue run-rate that, no doubt, will be exceeded by the time
Caldwell Partners reports its fiscal 2015 results.
Partners International is a premier executive search firm whose focus is on the
high end of the employment search market; for CEOs, CFOs, presidents, boards of
directors and senior level positions where an executive search is seen as an
important business investment rather than an expense. Caldwell Partners'
executive search expertise serves a multiple of major industries, including
Financial Services, Technology, Industrial, Insurance, Healthcare, Consumer,
Media and Government.
reported in our blog post last year that Caldwell Partners was poised to grow
(See: Caldwell Partners is on a growth course). In fiscal 2013, the Company
reported annual revenues of $33.8 million. This fiscal year the revenues should
top $50 million. Caldwell Partners has grown rapidly.
is behind the growth?
The Caldwell Partners brand is strong as one
of the world's most trusted advisors in executive search. Its business
operations have momentum.
The recent and continuous arrival of
high-calibre executive search partners who are deciding to join Caldwell
Partners is building the Company's overall market presence and industry
Average fees and search per partner at
Caldwell Partners is at industry-high levels.
Caldwell Partners has an international
footprint with offices/partners located across the United
and the UK (London).
The current business environment for
executive search services is robust.
a $50 million revenue run-rate and its international presence,
Caldwell Partners will be on the radar of industry consolidators.
an executive search firm is valued at a range of 1 to 1.4 times its annual
revenue run-rate. This suggests that today Caldwell Partners is worth $50-$70
million or approximately $2.30 to $3.30 per share. This equates to a potential
average upside of 122% in the stock price from its current trading levels.
it pay to hold Caldwell's
stock today and realize this value?
say yes. Why?
The Company pays a $0.02 per share quarterly
dividend (a 6.1%yield).
Dividend payout rates have increased annually
over the last three years.
Caldwell Partners maintains a very strong
balance sheet with cash on hand and no debt.
The Company is profitable.
Therefore we still recommend small cap investors should buy and hold Caldwell Partners' stock.
Partners has approximately 21.2 million shares outstanding.
Caldwell Partners International website: www.caldwellpartners.com
ownership disclosure: TSX: CWL - YES
This article is for informational purposes
only. This article is based on the author's independent analysis and judgment
and does not guarantee the information's accuracy or completeness. The
information contained in this article is subject to change without notice, and
the author assumes no responsibility to update the information contained in
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investor relations agreement with The Caldwell Partners International Inc. nor
has it received any compensation from The Caldwell Partners International Inc.
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The author of this article has acquired and
may trade shares of The Caldwell Partners International Inc. through open
market transactions and for investment purposes only.