Given Fridays price action I thought it might be helpful to lay out where we are in terms of valuation based on my numbers
At $1.95 our forward P/E numbers look like this.
FY to 6/22 - 27x to 29x (the range uses two assumptions as to the level of second half contract wins recognised during the period) FY to 6/23 - 17x FY to 6/24 - 12.5x
During these periods we should also see strong free cashflow. Currently net cash and the difference between payables and receivables is @A$ 39 million, that should increase to at least A$ 44.5 million by 6/22 and assuming no M&A or increase in R&D spend then we should have cash balances of A$ 67 million by 6/23 and A$ 96 million by 6/24.
The above numbers assume no upside to the Eisai licensing deal, and new clinical contract wins that grow by 8% a year over the prior 3 year rolling average.
CGS Price at posting:
$1.95 Sentiment: Buy Disclosure: Held
A personalised tool to help users track selected stocks. Delivering real-time notifications on price updates, announcements, and performance stats on each to help make informed investment decisions.
(20min delay)