Herewith some analysis on Aerometrix. BENCHMARKS USED Some of the players are owned by PE and some also get involved in infrastructure maintenance so Nearmap is the only clear benchmark that I could find. Also listed is Fugro and Autodesk which does spatial desktop work plus software. PROFITABILITY Looked at EBITDA to Revenue and Aerometrix at 32% versus Nearmap at 22% and other two at 3 and 6% only.Aerometrix appears to be a very good performer here. ASSET MANAGEMENT Looked at EBITDA to Total Assets and Aerometrix at 12% versus Nearmap at 15% and other two at 3 and 8% .Again, Aerometrix appears reasonable for this metric. OTHER MATTERS Aerometrix Revenue is $16m versus Nearmap at $78 m and other two at $1.7B and $2.9B . The two Australian operators very small. Nearmap was bought by an ASX listed company ten years ago and its revenue then was under $1m. It has taken a long time to get to $78m. Very interestingly, Aerometrix has not provided forecasts for 2020 . Management are not selling any shares at all. All money raised is being used to fund growth . PRICING As always, pricing is stratospheric for current listed players. Aerometrix at $1 is very cheap relative to all players but is is significantly smaller. Have played around with several metrics and reckon if Aerometrix is priced similar to other players, particularly Nearmap , then it is worth about $1.40 to $1.70 on listing. However, if the market tries to predict likely 2020 numbers then pricing could be higher . In this case could be $1.40 to $2. CONCLUSION Market potential for aerial photography is good and with drones there appears to be more and more interest in this area according to industry reports. I will bid for stock.
