I watched the presentation today for CCA and the CEO mentioned that industry average valuations for similar companies is around 6x revenue vs the current valuation of around 3x. I mentioned in one of my previous posts that I discovered Change Financial because of their acquisition of the Wirecard assets and that Wirecard was a customer of a company that I own stock in.
I thought at the time that since Wirecard was a customer of CoreCard Software (100% owned by the publicly traded company Intelligent Systems, I assumed that the acquired assets might have been based on the CoreCard platform. Another user pointed out that those assets were actually acquired when Wirecard purchased a company called GFG Group. So it was not a direct connection to the CoreCard platform. But the historical valuation of CoreCard/INS might help see how the valuation of CCA could change over time.
The stock of INS traded around $4 a share in 2017 and had a total market cap of around $35 million. For 2017 INS had revenue of $9.3 million and reported an operating loss of $1.4 million. So at that time it was trading at 3.7x revenue.
CoreCard/INS had some good fortune in getting Goldman Sachs as a customer in early 2018. But it wasn’t know at the time who the customer was that caused INS to report revenue of $20.1 million and operating profit of $6.1 million for all of 2018. INS finished the year at $13 per share or around 5.7x revenue.
In March 2019 Goldman Sachs announced they would be issuing the Apple Card later in 2019 based on the CoreCard platform. INS reported $35.8 in revenue for 2019 and the share price finished the year at $41 per share or around 10.1x revenue. Today INS trades at around 7.5x revenue.
Change Financial probably isn’t going to land a customer the size of Goldman Sachs/Apple and have their stock price go up 10x, but if they can onboard a few new customers and get better known you can see a pathway to a higher valuation just based on a higher multiple of revenue being applied to the share price.
CCA is like INS in 2017, just need to have a big positive news event to change the valuation from 3x to 6x+
- Forums
- ASX - By Stock
- CCA valuation
I watched the presentation today for CCA and the CEO mentioned...
-
- There are more pages in this discussion • 15 more messages in this thread...
You’re viewing a single post only. To view the entire thread just sign in or Join Now (FREE)
Featured News
Add CCA (ASX) to my watchlist
|
|||||
Last
7.3¢ |
Change
0.000(0.00%) |
Mkt cap ! $45.81M |
Open | High | Low | Value | Volume |
7.6¢ | 7.6¢ | 7.3¢ | $935 | 12.58K |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
4 | 61087 | 7.3¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
7.9¢ | 44170 | 1 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
4 | 61087 | 0.073 |
3 | 45806 | 0.072 |
1 | 300000 | 0.071 |
4 | 787699 | 0.070 |
1 | 50000 | 0.069 |
Price($) | Vol. | No. |
---|---|---|
0.079 | 44170 | 1 |
0.080 | 147316 | 3 |
0.082 | 600 | 1 |
0.094 | 17746 | 1 |
0.096 | 150000 | 1 |
Last trade - 12.36pm 19/07/2024 (20 minute delay) ? |
Featured News
CCA (ASX) Chart |