Recently stumbled across this firm randomly and wanted to do a deep dive as it looks wildly undervalued. Especially I found the 75% deal too good to be true here is some of the things I have found.
They are on a runrate of $50 million odd revenue per year, Acquisition finalised late feb and completed 4.6 million revenue by March 31. Concerns I have is $1 million Depreciation in same period. However is EBITDA going to be the best metric to prove profitability?
FCF is stated at 61% of EBITDA in their latest preso, I think this will show cashflows potentially inwards of 6-7 million in 22/23
Net Profit however will be much smaller and probably around +- 1 million
Growth trajectory is currently very large with the latest deal and looking to white label ATM's
This is operating on about 30 Million EV fully diluted, 500 SOI and 400 million options plus there is a net shortfall of current assets to current liabilities of $9million
Is it undervalued? in my opinion I think it is currently but discounted for execution risk. If we hit these guidance targets I see no reason why this cannot be a value of $80-100 Million EV. I think the net current ratio will be 0 by end of march 2023. Therefore you can do the maths on $20 million fully diluted MC versus the potential target listed above.
These are my thoughts and musings and is opinion only.
VOR Price at posting:
2.5¢ Sentiment: Buy Disclosure: Held
