Publicly traded diversified acquisition holding company, 1847 Holdings LLC (NYSE American:EFSH), has regained compliance with the continued listing standards set by the NYSE American LLC. The announcement was made on Tuesday, following receipt of written notice from the NYSE American on Monday.
The ".BC" indicator, denoting below compliance, will cease to be disseminated from Tuesday onwards, marking the removal of 1847 Holdings from the list of NYSE American noncompliant issuers on the Exchange's website.
Ellery W. Roberts, CEO of 1847 Holdings, expressed his pleasure at regaining compliance with the NYSE American's continued listing standards. He stated that the company remains focused on executing its strategic plan and is on track to achieve $90 million in sales in 2023. This aligns with InvestingPro's real-time metrics that indicate a promising revenue growth of 295.87% for FY2023.Q2.
Roberts also noted that the company's improving cash flow should allow it to resume dividends and potentially repurchase stock in the future, subject to establishing a stock buyback plan and future market conditions. Nevertheless, it's worth noting that current InvestingPro Tips suggest that the company does not pay a dividend to shareholders. He emphasized that maintaining their listing supports their strategy to acquire additional accretive, cashflow-positive companies at attractive multiples to maximize returns for shareholders.
1847 Holdings was founded by Ellery W. Roberts, a former partner of Parallel Investment Partners, Saunders Karp & Megrue, and former Principal of Lazard (NYSE:LAZ) Freres Strategic Realty Investors. The company's investment thesis is based on capital market inefficiencies that have left founders and stakeholders of many small business enterprises or lower-middle market businesses with limited exit options despite the intrinsic value of their businesses.
Given this dynamic, 1847 Holdings consistently acquires businesses it views as "solid" for reasonable multiples of cash flow. It then deploys resources to strengthen the infrastructure and systems of those businesses in order to improve operations. These improvements may lead to a sale or IPO of an operating subsidiary at higher valuations than the purchase price and/or alternatively, an operating subsidiary may be held in perpetuity and contribute to 1847 Holdings' ability to pay regular and special dividends to shareholders.
According to InvestingPro's data, the company's market cap stands at 433.5M USD, with a P/E ratio of 7.66, signaling a low earnings multiple. This is in line with InvestingPro Tips which highlight that the company is trading at a low earnings multiple. For more insights and tips on investing, users can access additional tips on InvestingPro's platform which currently lists 11 more tips for 1847 Holdings.
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