Tribe Property Technologies keeps “Buy” rating at Stifel

Following the company’s fourth quarter results, Stifel analyst Suthan Sukumar has maintained his “Buy” rating on Tribe Property Technologies (Tribe Property Technologies Stock Quote, Chart, News, Analysts, Financials TSXV:TRBE).

On April 14, TRBE reported its Q4 and fiscal 2024 results.

In the fourth quarter, Tribe posted Adjusted EBITDA of $727,000 on revenue of $8.43-million, a topline that was up 64.9%, year-over-year.

“We are thrilled to announce our exceptional performance for the fourth quarter and fiscal year 2024, marked by record-breaking revenue and a turn to positive Adjusted EBITDA in Q4-2024, marking a pivotal milestone in Tribe’s path to sustained profitability and cash flow generation,” CEO Joseph Nakhla said. “Our efforts are yielding significant results reflected in our improved gross margin, reduced cash burn, and the significant improvement in our Adjusted EBITDA throughout the year. As one of the largest Canadian-owned property management service providers, Tribe continues to navigate various economic cycles with strength and discipline, and we believe the growing sentiment towards ‘Buy Canadian’ presents opportunities to further strengthen our market position.”

The analyst summarized the quarter.

“Tribe delivered on upside EBITDA for FQ4, reflecting the company’s growing discipline around driving both growth and EBITDA as they continue down the path of digitally transforming the legacy property management industry,” he wrote. “While the outlook for new construction remains murky amidst an evolving government policy/interest rate/tariff picture, growing costs and regulatory pressures continue to provide a favourable backdrop for competitive displacements and up/cross-sell as Tribe leverages its expanded capabilities from recent M&A across a national footprint, keeping us constructive on both growth and margin upside. We expect consistent execution on profitable growth with ongoing deleveraging to support a re-rating in valuation.”

Sukumar currently has a “Buy” rating and price target of $0.75 on TRBE. The analyst thinks the company will post EBITDA of $1.7-million on revenue of $34.0-million in fiscal 2025. He expects those numbers will improve to EBITDA of $3.9-million on a topline of $38.4-million in fiscal 2026.

“This quarter’s EBITDA upside continues to underscore Tribe’s progress to-date in consolidating back-office systems across assets and regions to drive improved operating efficiencies,” Sukumar added. “Combined with ongoing cost discipline and a growing mix of higher-margin transactional revenues, we expect operating leverage to continue improving y/y, supporting consistent EBITDA expansion and cash flow generation ahead.”