Should get Q3 update in a couple of weeks. Cant wait. the revenue growth lately has been amazingly good.
From 2016 to 2021 revenue growth was 0%.. Oops. Went from $9m per annum to.. $9m. Peaked at $10m in 2020. All good thou, this was the building phase. The business was establishing and investing in itself. Kind of like when a café set's itself up and needs to fit out the kitchen, buy the table and chairs, purchase the right cash register, stock the fridges etc before the money is made.
Q1 F22 is when things really started to crank. The 5 year 0% growth charged to huge QRT on QRT growth:
FY22 Q1 revenue $2.6m
FY22 Q2 revenue $3.1m = 19% QRT on QRT growth
FY22 Q3 revenue $4.2m = 35% QRT on QRT growth
FY22 Q4 revenue $6.0m = 43% QRT on QRT growth
FY23 Q1 revenue $6.8m = 13% QRT on QRT growth. 162% PCP growth
FY23 Q2 revenue $8.6m = 26% QRT on QRT growth. 177% PCP growth
Awesome stuff. Q3 will alone produce more revenue than they used to do in the 5 years before (p.a.)
They are on track to do somewhere between $35m and $38m this year at the current run rate.
Market cap is $145m.
I think a 5x revenue multiple is not unreasonable given the huge growth rates and the fact that they are operating in a recession proof industry with a fortress balance sheet and huge market (see my post above).
Thus we get to a 31 March 2023 market cap valuation of $175m to $190m.
Or target SP of $1.10-$1.19
Todays SP is $0.91 so a 20-30% gain on the cards. This is what i was looking for earlier today
Disc. Holding and happy
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