At least some good news ...
... To get the link
1. Nearmap (NEA, $2.68)
Market capitalisation: $1.52 billion
Five-year total return: 33.3% a year
FY21 estimated yield: no dividend
FY21 estimated P/E: no profit
Analysts’ consensus valuation: $4 (Thomson Reuters), $4.08 (FN Arena)
Web-based aerial imagery and location data company Nearmap has been an excellent stock exchange performer in recent years, since its backdoor listing in 2012. Nearmap is in the “geo-spatial” business – it provides frequently updated, high-resolution aerial imagery to customers in industries such as urban planning, architecture, construction, infrastructure, government and defence.
Nearmap is rolling-out Nearmap 3-D, which allows customers to stream and export very large-scale 3-D imagery, and new AI technology that is turning millions of aerial images, captured over a decade, multiple times a year, into valuable datasets, which customers can use to more accurately and efficiently measure change and quantify attributes. The company grew its annualised contract value (ACV) by 36% in FY19, to $90.2 million, with more than one-third of its work now in North America, but disappointed investors by reporting a loss that widened for the year to $14.9 million – instead of falling – and declining to provide guidance for FY20.
NEA redressed that at its annual general meeting in November when it told the stock market to expect ACV of between $116 million and $120 million in FY20, which would represent growth of 29%–33%. The company is one of Australia’s software-as-a-service (SaaS) stars, but it must be stressed that net profit is not expected this year or in FY21. However, Nearmap is only scratching the surface of the North American market, and has plenty of room for growth.
