RXP - RXP Services Ltd

[steve fleming]

I am in this now JT.

Trading on a FY14 EV/EBITDA of 6 x

CCZ Stanton have a target of 80c
Ord Minnettt have a target of 95c

Consensus FY13 EBITDA is $4.85m so under/outperformance of that is the key number to look for when they report.
(RXP have previously provided EBITDA guidance of ~A$4.5 million to ~A$6.0 million)

Solid result (normalised EBIT of $5.15m) but great outlook statement.

"FY14 Revenue forecast to grow > 40%

Expect FY14 EBITDA margin to continue to grow"

That gives FY14 revenue of $42.2m @ (current) 20% margin = $8.5m

Current EV = $39m

So trading at 4.5x - looks way too cheap to me given growth profile.



EDIT: there is actually $5m of deferred consideration, so EV is actually $44m, so trading on 5x