The company looks solid & growing alot faster than $SSM. Higher gross margins also.
The acquisition of connect engineering looks fantastic IMO. Essentially paid $2.27m when you exclude cash from acquired company & would have seen a NPAT of $2.5m, that's over a 100% ROI!!! The sector trades on or about 5-7x EBITDA. FY22 forecast EBITDA is $34-$38m.
Let's pick the conservative figure of $34m EBITDA for FY22.
Lets use a 6x EBITDA multiple as this is around sector median.
$34m x 6x = $204m MC.
155.6m Shares out.
I believe it is fairly worth $1.30/share in FY22.
Based on a share price of $1.12 at close today I would expect a minimum return of 16% over the next year.
If management have been conservative with the EBITDA & they outperform with the connect engineering acquisition having a full year of operations & we hit the $38m EBITDA & use the 6x multiple should give us a share price of $1.46 in FY22, IRR 30%.
The company looks solid & growing alot faster than $SSM. Higher...
Add GNP (ASX) to my watchlist
 (20min delay)
|
|||||
|
Last
$2.16 |
Change
0.030(1.41%) |
Mkt cap ! $383.8M | |||
| Open | High | Low | Value | Volume |
| $2.16 | $2.18 | $2.14 | $85.20K | 39.54K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 2 | 2760 | $2.12 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $2.16 | 7854 | 1 |
View Market Depth
| Last trade - 16.10pm 26/07/2024 (20 minute delay) ? |
| GNP (ASX) Chart |