Have been holding this for a while now, but last week's result had me revisiting an earlier though. What company is ERoad most similar to on the ASX. I feel like it has some business model similarities with Catapult (devices + SaaS). The key difference is I think ERoad have a much bigger, but also more competitive market to play in. Anyway, I was looking at this over the weekend and it is surprising how similar the metrics between the two. Catapult has stronger revenue growth at this point, but I think ERD is going to be gushing free cash flow very soon. CAT has lower churn, but ERD seems more profitable at the current point. Why such a big difference in market cap though? Will ERoad's valuation catch up over the next 12 months? Be interested to hear some other people's thoughts.
Catapult (CAT.AX)
ERoad (ERD.AX)
1
Revenue
$185,000,000
$180,192,317
2
Revenue Growth
19.00%
6.81%
3
ACV
$161,000,000
$162,303,000
4
ACV Growth
18%
6.10%
5
ACV Retention
95.70%
92.50%
6
Customer Lifetime Value
7.8 Years
TBC
7
Gross Margin
81.00%
TBC
8
Operating Profit Margin
12.70%
TBC
9
EBITDA
$24,000,000
$55,241,162
10
EBITDA Margin
15.50%
TBC
11
EBIT
-$8,000,000
$5,468,504
12
NPAT
-$13,000,000
$1,100,000
13
Free Cash Flow
$8,600,000
$14,830,248
14
Market Cap
$1.6 billion
$300 million
Note: CAT report in USD, ERD report in NZD, so some of the numbers in AUD were rough and change based on currency. Also didn't have all the same metrics in the docs I was looking at and haven't had time to chase those yet.
ERD Price at posting:
$1.57 Sentiment: Buy Disclosure: Held
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