re debt, what you said is just common sense, nothing specific to ZIP. Could you work out the level of interest rate at which ZIP's gross profit will become zero or negative? Will we see that interest rate in the foreseeable future? It's just like borrowing money from the bank to buy a property, do you believe many people will go bankruptcy or pay off the loan in the future? We have evidence showing that ZIP's US revenue is increasing at >30% yoy and interest rate is decreasing there. AU situation is not ideal, so could be a risk here (but it's paying off its debt from 2.32B three months ago to 1.9B now). So I think it becomes more resilient to more interest hike (if any).
re ebidta, whether you like or dislike it, the market are using it as a key metric for business valuation. If ZIP can keep growing its ebtda (from 64M last FY to around 150M in FY25 and possibly 250M in FY26), you will see real profit and dividend.
ZIP Price at posting:
$3.14 Sentiment: Buy Disclosure: Held
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