Deep Value Ignored Tiny Micro Cap

EnviroStar, Inc. (EVI)

Company Website

EV = $4,221,500

Market cap = $8,090,000

Friday November 12, 2010 EnviroStar (EVI) reported a 33.8% revenue increase to $4,854,050 from $3,628,272 for the same period of last year. “Net earnings were $131,952 or $.02 per share compared to a loss of $70,898 or $.01 per share during the first quarter of fiscal 2010.”


It’s not just the dramatically improved operational results that are impressive but it’s the other financial metrics surrounding this deep value company.

Average ROIC over 07 to 09 was 7.57%, TTM ROIC was 5.65%. The ROIC is improving and should revert back to historical results. The average FCF over the prior 5 years to the current enterprise value is 23.71%. Currently the FCF to EV is 15%.

67% is held by insiders.

Share count has remained static over the past 5 years.
Total debt has been reduced from 2006.

Per share data

EV = .60
Price 1.15
Cash = .86
Sales = 2.79
Cash + AR + Long term Investments – Total Liabilities = .75
Cash – Total Liabilities = .55
GP = .70
BV = 1.07

Long EVI


jeff said...

Do you think that the Steiners are going to try to take this company private again?

ShadowStock said...


With 67% owned by insiders it seems they would be highly motivated to take the company private. As you once posted “There is no doubt that DCU is freakishly undervalued”.

If results continue to improve they should be motivated to distribute the growing cash balance hence raising the stock price.


I'm holding on to my shares

rdncoic said...

Hmmm...EVI...ENVIROSTAR...oldmanbadman rdncoic

This could be a very nice investment. Buy slowly, buy on the dips, and then get a great dividend. Private company or otherwise. oldmanbadman rdncoic