ALS Limited (ALQ) provides analytical and testing services businesses. The Company partnerships span across major sectors including mining, natural resources, environmental, food, pharmaceutical, industrial and inspection services. The Company operates from more than 350 sites in over 70 countries across Africa, Asia, Australia, Europe and the Americas. We maintain our fair value estimate of $8.40 for ALS, with the materials testing specialist screening as still materially overvalued.

The segment experienced stellar growth over the last two years, following a boom in the mining sector driven by post-pandemic financial stimulus and a subsequent demand bump. Increasing demand for battery minerals and other future-facing commodities can benefit the commodities segment in the long run. The near-term market dynamics have not significantly changed to warrant an update to our forecasts. We forecast a 10-year adjusted EBITDA CAGR for the commodities segment of just 1%. However, the life sciences division exhibits less cyclicality than commodities, providing a more stable earnings stream for ALS.