This release shows that management have addressed shareholders (me) concerns about the information accompanying the rent resume announcement. Having said that I am not sure that this information paints a compelling picture.
1) ARPU: The 230% increase in 12 months is excellent but has flat lined in over the last 3 months. Currently generating ~ $1m p.a from product sales. Not bad but not enough. Assuming this grows at at RR rate 45k Qtr and ARPU $ grows at 10% QoQ this product revenue will grow to ~ $5m over the next 10 years. Not enough to make a really generate significant EBITDA and FCF.
So what else to have coming down line is a really important question that management needs to answer quickly.
2) Cash will run out in Q3 or Q4. Again assuming overall 10% growth rates for all income and no change to current expenses company will need > $8.5m of capital to get it through to a cash flow positive position. If Raised at $0.05 per share this will dilute existing shares by ~ 46% or put another you will have to cough up an additional 46% on top of your current holdings just for your equity position to stand still.
3) Running all this though my valuation models spits out $0.02 per share after raise. I must stress this is not a some mindless prediction. It just a model and in my experience all models are wrong. It does however point to some downside risk building up in this stock.
Positives: Management
Negatives: Revenue Growth
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rent.com.au limited
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This release shows that management have addressed shareholders...
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Last
2.6¢ |
Change
0.001(4.00%) |
Mkt cap ! $23.29M |
Open | High | Low | Value | Volume |
2.5¢ | 2.6¢ | 2.5¢ | $44.86K | 1.762M |
Buyers (Bids)
No. | Vol. | Price($) |
---|---|---|
1 | 65503 | 2.6¢ |
Sellers (Offers)
Price($) | Vol. | No. |
---|---|---|
2.7¢ | 471385 | 7 |
View Market Depth
No. | Vol. | Price($) |
---|---|---|
1 | 65503 | 0.026 |
3 | 807585 | 0.025 |
2 | 71000 | 0.024 |
2 | 230000 | 0.023 |
1 | 200000 | 0.017 |
Price($) | Vol. | No. |
---|---|---|
0.027 | 471385 | 7 |
0.028 | 451646 | 5 |
0.029 | 270451 | 4 |
0.030 | 367480 | 3 |
0.031 | 23000 | 1 |
Last trade - 12.42pm 28/07/2025 (20 minute delay) ? |
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