Only a small portion of their revenue is SaaS and the gross margins aren't that high compared to other tech companies (57.5%) which is probably why it isn't 5x revenue. However, their margins are growing and so is revenue, so there's no reason why it can't reach 4-5x revenue if they continue to grow strongly.
The market landscape looks to be fragmented, and as mentioned, smaller businesses are struggling with covid, so it might present a few bargains for Straker. Moreover, when the market recovers from covid it should provide further tailwinds. The IBM deal was a real game changer.
STG Price at posting:
$2.10 Sentiment: Buy Disclosure: Held
