SGI looks seriously undervalued IMO looking at its FY20 numbers (significant growth despite COVID and international expansion M&A):
- $68m total revenue (up 8%)
- $57m Australian revenue (up 36%)
- Profitable - NPAT $100K (would be $1.7m excluding growth & M&A expenses)
- Underlying EBITDA up 47% to $3.2m
- Clean balance sheet - only $1.4m net debt
- Cashflow positive
- In July secured $1.5m new UK sales orders (already ahead of the total FY20 number)
- Increasing Gross profit margins (FY20 26.6%, FY19 24.3%, FY18 18.5%)
Top 20 hold 79% and Directors and Execs hold 18% so plenty of skin in the game. I cant find anything else on the ASX with these kind of financials and growth prospects with such a low market cap. Market will wake up one day!
Good luck and DYOR.
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