Shift Inc may be expecting OP growth to slow in FY23 (Aug yr-end) but there are good reasons for this. The bottom line is that the company is executing its strategy well. Its FY24 EV/OP of 29.5x will drop sharply over the next two years to just 16.1x based on PSA estimates, while its FY24 EV/S is just 3.6x. For a company increasing annual sales in excess of +35% YoY, these valuations have the potential to pique investor interest.
18 months after many Japanese mid-sized enterprise software stocks were sold off, many remain more than 50% lower than their peaks. And yet, these companies continue to grow strong sales. In this report, we take a look at 11 of these companies and at the extent to which their operating performances are reflected in their current valuations.
Shift’s FY23 Q2 earnings beat has sent the stock up +19% WTD, taking EV/OP to 44.2x. However, we expect OP to continue to grow in excess of +40% YoY until at least FY25, which rapidly brings down valuations. As such we think the stock still remains attractive, even after this week’s rally.
Japanese SaaS and small to mid-sized IT company stock prices have taken huge hits since the market sell off started in mid-November. We take a look at a range of companies and how attractive they are looking now valuations have tumbled.
Full Article at IIR has reaffirmed its Recommended rating for PIA after undertaking a review post the appointment of a new Portfolio Manager, Harding Loevner. The full report can be found on the IIR website. On 26 July 2021, Pengana International Equities Limited (PIA) announced a fully franked dividend of 1.35 cents per share for the June quarter. This represents an 8% increase on the March quarter dividend and takes the total dividends declared for FY21 of 5.1 cents per share, fully franked....
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