Humm Group (HUM.ASX) is now officially the most profitable BNPL...

Humm Group (HUM.ASX) is now officially the most profitable BNPL company in Australia and possibly the world. Management has given guidance of 1H cash NPAT of $43m, up 25% on the prior period. 2H of year will see increased marketing costs and investment into the entering of two new international markets. We estimate that HUM will achieve NPAT of approximately $70m for FY21 and is trading on a PE of 9x. Unfortunately, HUM is extremely profitable and investors valuing BNPL companies are ascribing higher valuations to their loss-making competitors. Eventually that bizarre paradigm will shift and the stock will re-rate to our estimated valuation of $2.00+.