We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Zacks recently upgraded 2 small caps from Neutral to Outperform based on recent strategy execution by these companies which appears sustainable.
Fitlife Brands, Inc. (FTLF - Free Report) is a provider of nutritional supplements serving the wellness and fitness markets. With a market cap of $153 m, Fitlife Brands, Inc. has $59 m of TTM sales. In Q2 Fitlife Brands (FTLF - Free Report) grew revenue 14.7% YOY while adj. EBITDA grew 29%.
Gross Margin increased 480 bps YOY to 44.8% as higher margin online sales now comprise nearly two-thirds of revenue combined with effective cost optimization. Additionally, the company has been acquiring well-known brands and successfully rejuvenating them e.g. MusclePharm when incorporating them into their marketing ecosystem.
This asset light model with a high percentage of online sales is conducive to strong FCF (free cash flow). In our opinion, the strength in wellness and fitness trends appears sustainable. Anecdotally, I’ve been struck by the number of young athletes utilizing nutritional supplement products.
The stock is currently trading at 12.8X trailing 12-month EV/EBITDA TTM, which compares to 22.1X for the Zacks sub-industry, 13.5X for the Zacks sector and 14.7X for the S&P 500 Index. Over the past year, the stock has traded as high as 13.9X and as low as 10.1X, with a one-year median of 12.3X.
Source: Zacks Investment Research
Steel Partners Holdings L.P. (SPLP - Free Report) is a diversified holding company focused on four segments: Diversified Industrial, Energy, Financial Services, and Supply Chain. Steel Partners (SPLP - Free Report) has a market cap of $800 m with TTM sales of $1.9 B.
The Diversified Industrial segment manufactures engineered niche industrial products, including brazing alloys, stainless and low-carbon steel tubing, commercial construction materials, woven substrates for composite applications, power electronics, and specialized blades and films. This segment contributed 62.7% to the total revenues in 2023
Revenue grew 6.4% YOY in Q2 as weakness in the Energy segment was offset by strength in the other three segments. Q2 adj. EBITDA grew 13.8% YOY bolstered by the consolidation of its Supply Chain segment.
Most notably, the company has been able to reduce its debt from $191.4 m to $78.7 m over the last 6 months resulting in a material reduction in interest expense. Steel Partners Holdings (SPLP - Free Report) also has $256.4 m in cash and cash equivalents.
The stock is currently trading at 1.28X trailing 12-month EV/EBITDA TTM, which compares to 14.44X for the Zacks sub-industry, 14.44X for the Zacks sector and 18.88X for the S&P 500 index. Over the past five years, the stock has traded as high as 20.85X and as low as 1.04X, with a 5-year median of 3.97X.
Source: Zacks Investment Research
See More Zacks Research for These Tickers
Normally $25 each - click below to receive one report FREE:
Image: Bigstock
2 Small Caps Recently Upgraded to Outperform
Zacks recently upgraded 2 small caps from Neutral to Outperform based on recent strategy execution by these companies which appears sustainable.
Fitlife Brands, Inc. (FTLF - Free Report) is a provider of nutritional supplements serving the wellness and fitness markets. With a market cap of $153 m, Fitlife Brands, Inc. has $59 m of TTM sales. In Q2 Fitlife Brands (FTLF - Free Report) grew revenue 14.7% YOY while adj. EBITDA grew 29%.
Gross Margin increased 480 bps YOY to 44.8% as higher margin online sales now comprise nearly two-thirds of revenue combined with effective cost optimization. Additionally, the company has been acquiring well-known brands and successfully rejuvenating them e.g. MusclePharm when incorporating them into their marketing ecosystem.
This asset light model with a high percentage of online sales is conducive to strong FCF (free cash flow). In our opinion, the strength in wellness and fitness trends appears sustainable. Anecdotally, I’ve been struck by the number of young athletes utilizing nutritional supplement products.
The stock is currently trading at 12.8X trailing 12-month EV/EBITDA TTM, which compares to 22.1X for the Zacks sub-industry, 13.5X for the Zacks sector and 14.7X for the S&P 500 Index. Over the past year, the stock has traded as high as 13.9X and as low as 10.1X, with a one-year median of 12.3X.
Source: Zacks Investment Research
Steel Partners Holdings L.P. (SPLP - Free Report) is a diversified holding company focused on four segments: Diversified Industrial, Energy, Financial Services, and Supply Chain. Steel Partners (SPLP - Free Report) has a market cap of $800 m with TTM sales of $1.9 B.
The Diversified Industrial segment manufactures engineered niche industrial products, including brazing alloys, stainless and low-carbon steel tubing, commercial construction materials, woven substrates for composite applications, power electronics, and specialized blades and films. This segment contributed 62.7% to the total revenues in 2023
Revenue grew 6.4% YOY in Q2 as weakness in the Energy segment was offset by strength in the other three segments. Q2 adj. EBITDA grew 13.8% YOY bolstered by the consolidation of its Supply Chain segment.
Most notably, the company has been able to reduce its debt from $191.4 m to $78.7 m over the last 6 months resulting in a material reduction in interest expense. Steel Partners Holdings (SPLP - Free Report) also has $256.4 m in cash and cash equivalents.
The stock is currently trading at 1.28X trailing 12-month EV/EBITDA TTM, which compares to 14.44X for the Zacks sub-industry, 14.44X for the Zacks sector and 18.88X for the S&P 500 index.
Over the past five years, the stock has traded as high as 20.85X and as low as 1.04X, with a 5-year median of 3.97X.
Source: Zacks Investment Research