Did a few quick numbers on ZNO as we get closer to FY20 results announcement... I'm picking: $38.2m Revenue (1H20 was $1.74m) $19.1m Gross Profit (50% margin, 52% as at 1H20) $4.8m in Expenses ($1.7m as at 1H20) $14.3m in NPAT (1H20 was a loss of 0.73m)
Market Cap currently $391m, if NPAT $14.3m, PE is about 27 - absolutely cheap as chips in this market for a company that is only going from strength to strength - and has the profits and cash flow to fuel this growth without having to go to cap in hand to shareholders on an annual basis to continue to achieve high growth (eg APT lol)
I'm looking forward to FY20 results announcement which will hopefully have some forecast/outlook comments - at this point in time, I'm expecting profits to double in FY21 as contracts ramp up and the threat of virus second waves remains strong - if ZNO achieved a $30 odd million in NPAT for FY21, the share price as at Friday would be on a forward PE of barely 13x - now that is stupidly cheap!
ZNO is hard to value - there really is no other company like it (for multiple good reasons) - but $5 sooner rather than later is certainly not out of the question.
