GAP gale pacific limited

0.00%

9.8¢

agree is a great buy. its trades of a PE of 10, a divi of about...

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Autosime

20,891 Posts.

2164

10/11/16

11:28

Post #: 20513657

Originally posted by Taketwo ↑

Column 1 Column 2 Column 3 Column 4 Column 5 Column 6 Column 7 Column 8 Column 9

1 FY11 FY12 FY13 FY14 FY15 FY16 FY17F FY18F

2 Revenue[/B] 95.6 110.5 120 137.3 148 173.2 199.2 229.1

3 Gross profit 36.8 45 49.3 68.3 71.6 76.3 89.6 103.1

4 EBITDA 15.6 17.7 17.5 16.5 12.4 16.1 19.9 22.9

5 Ratios

6 Revenue growth (%) n/a 15.6% 8.6% 14.4% 7.8% 17.0% 15.0% 15.0%

7 EBITDA growth (%) n/a 13.5% -1.1% -5.7% -24.8% 29.8% 23.7% 15.0%

8 Gross margin (%) 38.5% 40.7% 41.1% 49.7% 48.4% 44.1% 45.0% 45.0%

9 EBITDA margin (%) 16.3% 16.0% 14.6% 12.0% 8.4% 9.3% 10.0% 10.0%

10 Valuation

11 Enterprise Value n/a n/a $ 90.9m $ 85.6m $ 76.1m $ 131.6m $ 163.3m $ 187.8m

12 Market capitalisation n/a n/a $ 89.2m $ 74.4m $ 59.5m $ 123.5m $ 158.3m $ 185.8m

13 Share price $ 0.30 $ 0.25 $ 0.20 $ 0.42 $ 0.53 $ 0.62

14 EBITDA multiple 5.2x 5.2x 6.1x 8.2x 8.2x 8.2x

These multiples are quite low for a business that is growing revenue 12% annualised since FY11. Gross margin has remained relatively consistent highlighting the underlying strength of the business.

I have assumed the business continues to pay down debt in FY17 and FY18, increasing enterprise value.

As can be seen, assuming no material amount of new shares are issued a share price of $0.53 is achievable by 30 June 2017 assuming 15% revenue growth and consistent EBITDA margins of 10%.

This is a premium of 61% to the current share price of $0.33 (9/11/2016).

Scream with me, BUY BUY BUY BUY!

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agree is a great buy.
its trades of a PE of 10, a divi of about 4.5 and will likely be debt free within 6 months. It produces products that have residential , commercial and agriculture application and achieves robust margins. it has shown a strong and solid earnings growth which is and will be reflected in increasing dividends and reinvestments back into the business. The management provide great detailed updates to the market.

GAP Price at posting: 36.0¢ Sentiment: Buy Disclosure: Held

1 Upvote

0 Great analysis

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Last 9.8¢		Change 0.000(0.00%)		Mkt cap ! $27.89M

Open	High	Low	Value	Volume
9.8¢	9.8¢	9.8¢	$1K	10.20K

Buyers (Bids)

No.	Vol.	Price($)
2	72089	9.3¢

Sellers (Offers)

Price($)	Vol.	No.
9.8¢	21615	1

View Market Depth

No.	Vol.	Price($)
2	72089	0.093
1	97000	0.092
1	103365	0.091
1	11120	0.090
2	86247	0.089

Price($)	Vol.	No.
0.098	21615	1
0.099	200000	1
0.105	20000	1
0.150	16740	2
0.175	5719	1

Last trade - 09.59am 31/07/2025 (20 minute delay)

GAP (ASX) Chart

agree is a great buy. its trades of a PE of 10, a divi of about...

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	Column 1	Column 2	Column 3	Column 4	Column 5	Column 6	Column 7	Column 8	Column 9
1		FY11	FY12	FY13	FY14	FY15	FY16	FY17F	FY18F
2	Revenue[/B]	95.6	110.5	120	137.3	148	173.2	199.2	229.1
3	Gross profit	36.8	45	49.3	68.3	71.6	76.3	89.6	103.1
4	EBITDA	15.6	17.7	17.5	16.5	12.4	16.1	19.9	22.9
5	Ratios
6	Revenue growth (%)	n/a	15.6%	8.6%	14.4%	7.8%	17.0%	15.0%	15.0%
7	EBITDA growth (%)	n/a	13.5%	-1.1%	-5.7%	-24.8%	29.8%	23.7%	15.0%
8	Gross margin (%)	38.5%	40.7%	41.1%	49.7%	48.4%	44.1%	45.0%	45.0%
9	EBITDA margin (%)	16.3%	16.0%	14.6%	12.0%	8.4%	9.3%	10.0%	10.0%
10	Valuation
11	Enterprise Value	n/a	n/a	$ 90.9m	$ 85.6m	$ 76.1m	$ 131.6m	$ 163.3m	$ 187.8m
12	Market capitalisation	n/a	n/a	$ 89.2m	$ 74.4m	$ 59.5m	$ 123.5m	$ 158.3m	$ 185.8m
13	Share price			$ 0.30	$ 0.25	$ 0.20	$ 0.42	$ 0.53	$ 0.62
14	EBITDA multiple			5.2x	5.2x	6.1x	8.2x	8.2x	8.2x

agree is a great buy. its trades of a PE of 10, a divi of about...

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