I have had a look at Mitula and here is my analysis .
BENCHMARKS
Have compared with REA Group and SEEK in Australia , Naspers in South Africa and Google, Facebook and EBay in USA. These businesses have been variously mentioned as being in a similar space to Mitula. Interestingly, this business was founded in Spain. Their biggest competitor, Trovit was also founded in Spain and bought by Japanese interests.
PROFITABILITY
Mitula EBIT to Sales is amazing at 50 percent. Compares with Facebook, REA Group and SEEK. The rest earn around 20 percent. In short, a very profitable business.
RETURN ON ASSETS
Again , Mitula amazing with a return on assets of 68 percent. Compares with REA Group and the rest earn around 10 to 20 percent.
PRICING
At the IPO price of 75 cents Mitula is cheap relative to the above benchmark companies. However, Mitula is significantly smaller so should trade at a discount ?
If Mitula traded at prices similar to the benchmark companies it should trade around $1.50.
Mitula is being sold around 6 times sales. Recent Advertisement tech deals have been Brightroll sale at six times sales and Freewheel deal at ten times sales as a comparison.
SUMMARY
A very profitable business being sold at a fairly expensive price but still cheap relative to its benchmarks.
I will try and bid for some of these shares in the IPO .
Does anyone have any other views or insights into Mitula ?
Keen to know everyone's views as always
Will anyone be trying to get shares in this IPO ?
