As a precursor, EGL has announced $8m in new contracts in the last month compared to a total sales last year of $9m!
On historical earnings its trading at 13.6x PE (av small companies from shareanalysis.com is 17.9x) based on 2002 earnings (ex goodwill).
Financial position looks good with 2x current ratio and 5c per share in cash and investments. This means that @ 0.145c you are paying 0.05c for cash in the bank and 0.095c for the future cashflows...
Looking forward is where the exciting stuff happens... if you assume 8m in new revenue announced in last month is at same NPAT margin as last yr ($0.713M NPAT pre goodwill / $9.555M Rev = 7.5% which should be conservative) gives you approx $1.3m in profit for 2003 which puts them on a PE of 5.6x next years earnings (av small companies from shareanalysis.com is 17.3x 2003) - looks very cheap at these levels with a PE of one third the average!
EGL Price at posting:
0.0¢ Sentiment: None Disclosure: Held
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