Whilst I have him on ignore, it seems like Stonks is struggling to locate information on the incredibly strong financial performance of this company. Whilst it is relatively easy to find this information (it was only recently announced), I can understand why it may be difficult to find for those who have a below average level of intelligence. As such, I will make it easy and provide this information myself, as I am feeling kind today.
As we can see, they recorded a phenomenal increase in revenue for the second half of 77%. This is quite spectacular considering this result does not even reflect the additional marketing investment that has been made (with a significant expansion in the number of sales reps on the ground putting this device into surgeons' hands). With a run rate of nearly
$28m AUD, the current valuation is well below 2x sales on a forward looking basis. Even more, based on the improved sales result they expect a MATERIAL improvement in the operating result. This indicates to me we should expect a significant improvement in the bottom-line figure when the results arrive at the end of August. This links well with the forecast, provided by the company, of a cash flow positive result for the glaucoma division by FY25 (although, given their strong performance recently I wouldn't be surprised if that result comes even earlier). They have also been recording a consistently improving operating result since the launch, so again I have no reason to expect this trend won't be maintained.
We have a high growth company on the verge of profitability being valued akin to a zero growth and challenged company, you don't need to have even half a brain to know that this isn't right. This company is significantly undervalued on the basis of the hard numbers, no arbitrary analysis based on emotions can say otherwise. This is the highest growing stock in the MIGS industry with a clear market leading device (all the feedback from doctors seems incredibly positive - they love it), yet fetches a valuation multiple significantly lower than that of other peers.
$1 is closer to fair value, acknowledging the fact that the Aussie market tends to undervalue growth stocks. This would be a reasonable valuation given the current fundamentals, however given the rate of growth here this price target may also quickly become far too low. $100m revenue, especially as the global expansion continues to gain momentum, is a fairly realistic target for over the next few years. Perhaps even too low, given the speed at which the "interventional glaucoma management" trend is gaining pace. iTrack Advance is uniquely positioned to benefit the most from this trend, given it is the only MIGS device that does not tear or leave a stent behind, and has the longest-term data of all the devices. Moreover, it is a device that is effective in many different types of glaucoma, making the probability of success far higher.
(20min delay)