MYE

Myers is a low-growth, two-segment (Material Handling + Distribution) plastics and tire-service-supply company whose top line has gone nowhere since the 2022 peak: revenue $900M (FY2022) → $813M → $836M → $826M (FY2025, -1.3% YoY). The headline +385% jump in net income to $34.9M and +389.5% EPS to $0.93 is real but optical — it laps a depressed FY2024 ($7.2M net income), and the FY2025 figure simply returns the company to its normal ~$33–49M earnings band of 2021–2023. Operating margin of 9.0% (operating income +67.6% to $74.6M) and a 33.4% gross margin show the core is recovering, but this is a flat, cyclical business, not a grower.

Where the company earns its keep is cash: operating cash flow of $86.8M against just $19.6M capex leaves ~$67M of free cash flow, comfortably funding the $20.5M dividend (cash payout ~31% of OCF) with room to keep cutting debt — long-term debt already fell 12.4% to $311M. That said, the balance sheet still carries weight: liabilities/equity of 1.89x, a -$33.9M accumulated deficit (retained earnings), and a current-debt slug that jumped 76% to $34.6M. The MD&A flags genuine sensitivity — a 1% rate move shifts variable interest expense ~$1.7M, the company carries floating-rate SOFR/EURIBOR borrowings only partly swapped, and crucially it runs NO hedges on plastic-resin input costs, its primary raw material. With cash of just $45M, the model is exposed to a resin spike or a demand downturn.