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6.1¢ cirrus networks holdings limited

The biggest risk is that the high revenue/low margin business...

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nihilism

11,400 Posts.

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10/08/22

09:45

Post #: 63025416
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Originally posted by Bailey241: ↑

$9.6m in net cash with nil debt and a $1.6m PBT for 2H following the restructure in October last year. Strong growth in higher margin Managed services.

Annualising 2H22 out, its trading ex cash on a 4x EBITDA multiple and 7x P/E with the share price at $0.034. Factoring cash balance into working capital those multiple lift to 6x and 10x respectively.

"very high investment risk not worth it" - on what basis? no creditor to pull the rug, net cash of 30% of market cap and cashflow conversion >100% for 2H.

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The biggest risk is that the high revenue/low margin business doesn't take a large event to turn into high revenue negative margin business... but they've got a good cash buffer now so it's more a risk on valuation than a risk of huge impact to the company.

CNW Price at posting: 3.0¢ Sentiment: Hold Disclosure: Held
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0 Great analysis

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