While I like SSM's business, it is increasingly difficult to identify the growth engines. SSM has been priced as a 'fast grower', which has definitely been the case for some time. However, this latest news re-rates SSM. The top-line is increasingly under pressure - the Comdian acquisition while accretive is experiencing negative organic growth (e.g. losing revenue); 5G / wireless has been reducing due to ongoing delays; and now the NBN which has been the cash cow for so long is likely to see -$200m revenue in FY21 because it is a shrinking pie and they are giving up market share to BSA and Downer EDI.
As I said, I like the business and I reckon management will be able to fill the hole. But in the meantime, a quick back of the envelope discounted cash flow analysis shows their intrinsic value has reduced from $1.93 (was frothy coming in to this news) to around $1.53 (not suggesting that is the target price). As another commentator said, I'd be interested in seeing some support, improved news, or insider buying ...
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Ann: SSM secures multi-year Unified Operations Agreement with NBN, page-89
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Last
$1.28 |
Change
0.000(0.00%) |
Mkt cap ! $788.4M |
Open | High | Low | Value | Volume |
$1.28 | $1.30 | $1.27 | $1.140M | 889.9K |
Buyers (Bids)
No. | Vol. | Price($) |
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2 | 7656 | $1.27 |
Sellers (Offers)
Price($) | Vol. | No. |
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$1.28 | 726 | 1 |
View Market Depth
No. | Vol. | Price($) |
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2 | 7656 | 1.270 |
4 | 27551 | 1.265 |
2 | 6850 | 1.260 |
1 | 1872 | 1.255 |
1 | 1872 | 1.250 |
Price($) | Vol. | No. |
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1.280 | 726 | 1 |
1.285 | 1190 | 1 |
1.290 | 29621 | 6 |
1.295 | 27156 | 4 |
1.300 | 92761 | 12 |
Last trade - 16.10pm 28/06/2024 (20 minute delay) ? |
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