EYE/PNV Comparison

Thought I would start a thread comparing EYE to PNV given that they are actually very similar in terms of their financials, although PNV is obviously a few years ahead in terms of generating sales growth (which makes it a good way of predicting how EYE should perform share price wise). PNV similarly has a disruptive and innovative product in an emerging market with a large potential TAM, as well as recurring revenue from customers making frequent orders. Forecasted revenue for EYE is expected to closely resemble that of PNV as well. Moreover, they also have similarly high gross margins, as seen in the table below. The company also began its growth journey with a similar cash pile to what EYE currently has. PNV therefore is a great way of determining just how high the price of EYE could run if we can get the predicted sales growth.

Even more, it is important to note that with revenue of $3m (significantly below that of EYE's current revenue of $17M), it started with a market cap of $150m (compared to EYE's current market cap of $38m). As a result, I would expect EYE to generate magnified returns relative to PNV as a result of a rerate due to the high growth in sales, and also a significant rerate in the valuation multiple itself (in addition to any other potential rerate events such as 2RT progress)

I intend on adding more to this thread/analysis, but to get started I will provide the important financials + a couple charts I came up with. I know there are several other PNV investors also here, so keen to hear other views. Definitely exciting to see similar examples showing just how high EYE could go if the predicted sales eventuate


















NOTES: interesting to note that the market was slow to react to growth, did not immediately price it in. Seems like the same is happening for EYE, with the market still not factoring in predicted growth (despite all the indicators pointing to FY24 being an absolute stunner)




Analysts covering EYE expect around 100% growth in FY24, and the company is clearly preparing for this (rapid expansion in capacity etc.). Will the market wait until it receives this in the financials before rerating the share price, or will the market begin to anticipate this growth prior to the release of financials???




As a disclaimer, I do hold both companies.