Ann: Quarterly Cash Flow and Activities Report Q3 FY22, page-2

In my eyes, this is a very solid quarter. The business hasn't shot the lights out just yet (such as by demonstrating material growth cash), but they are trending firmly in the right direction with a 3rd consecutive quarter of CF+ operations. The odds are now in ENA's favour of seeing a full-year profit (albeit a small one) for FY22. Top-line growth also appears promising with quarterly revenue up 46% pcp and quarterly GWP up 62% pcp. My thesis is that the recent opening of the Sydney branch and the scheduled opening of the Melbourne office (May 2022) should drive an acceleration in revenue across the next couple of quarters. They are doing well so far to balance this expansion with CF+ operations. ENA's ambition is to drive to a ~30% EBITDA margin once at scale. So converting a 15x EV/EBITDA multiple to a revenue multiple (at 30% margins) leads me to believe that a ~4.5x revenue multiple is fair. At a market cap of $22m, (and YTD revenue of $5m, with another quarter still to come in the financial year), I'm happy to keep accumulating here.