Big investments will lift Mattr profits

Article Excerpt

MATTR CORP. $14 is a buy for aggressive investors. The company (Toronto symbol MATR; Aggressive Growth Portfolio, Manufacturing sector; Shares outstanding: 66.4 million; Market cap: $929.6 million; Price-to-sales ratio: 1.1; Dividend suspended in March 2020; TSINetwork Rating: Average; www.mattr.com) is the new name for ShawCor Ltd. (old symbol SCL) after it completed a major transformation. Under that plan, the company sold its pipeline coating and related businesses. The remaining firm makes plastic pipes, underground liquid storage tanks and specialized wires, cables and tubes. The stock is down from its recent peak of $18 in July 2024 mainly due to concerns over its plan to spend $150 million to modernize its facilities. A potential economic slowdown has also weighed on the stock. Still, the plan should increase Mattr’s annual sales by over 10% a year through 2030 and lift its gross profit margins from 16.9% in the quarter ended June 30, 2024, to more than 20% by 2030. Mattr is a buy for aggressive investors. investors…