Added to YB: 2026-08-25
Pitch date: 2026-08-06
WSTL [bullish]
Westell Technologies, Inc.
-14.31%
current return
Author Info
Matheus Lonning shares independent research. Small/micro cap focus. Long biased. Sign up for the newsletter.
Company Info
Westell Technologies, Inc., through its subsidiary, designs, manufactures, and distributes telecommunications solutions to telephone companies in the United States.
Market Cap
$62.3M
Pitch Price
$7.08
Price Target
17.00 (+180%)
Dividend
N/A
EV/EBITDA
1.71
P/E
4.06
EV/Sales
0.41
Sector
Communications Equipment
Category
value
Is a Re-Rate Justified? One of the most undervalued small caps I have come across.
WSTL: Trades ~4x trailing P/E, 0.52x EV/Sales despite 59% rev growth, $14.5M EBIT and a fortress balance sheet ($36M net cash, no debt) vs $70M cap. Market prices in an earnings cliff, but highest-margin ISM segment (54% GM, +91% YoY, recurring monitoring revenue) and CNS (+52%) are levered to a multi-year 5G/rural broadband cycle. Author PT $17 on a 10x P/E re-rate. Key risk: one customer (speculated Verizon) = 42.3% of FY26 revenue; OTC illiquidity and dual-class structure also weigh. Net cash caps downside.
Read full article (6 min)