Undervalued Cash flow positive business, page-2

@cjarma01

12 months cash receipts of $100.5M & cash balance of $56.2M. Will burn about $5M cash Q4 FY23 = $51.2M balance & break even.

$115.6M MC / $100.5M TTM revenue = x1.15. Should re-rate to x3 TTM to around $300M MC when market improves for small caps.

BTH $291.5M MC / $125M FY23 revenue = x2.33. BET has x2 upside in comparison.

With BET 10% revenue growth to $110M TTM x 3 = $330M MC.

$115.6M MC - $51.2M cash after Q4 FY23 = $64.4M EV.

About $5M cash burn per quarter. Staff overheads to reduce from $91.5M to $70M per year from Q1 FY24 = $21.5M / 4 = $5.375M per quarter.

Cashflow break even from Q1 FY24.

BTH & MP1 trading at around x60 EBITDA.

Assuming BET can make $5M EBITDA FY24 x 60 = $300M MC or about 32c SP in a year.

$100M revenue = break even & with 10% revenue growth FY24 = +$10M revenue FY24 x 50% EBITDA = $5M EBITDA forecast.

Will become a takeover target when generating EBITDA.

Broker Consensus

	Breakdown	5 Buy·1 Hold·0 Sell
Recommendation	Strong Buy
Last Updated	01/06/23

Fair Value Estimate

0.404

BET is trading below its Morningstar Fair Value Estimate.

Might get pushed down to 10c before it bounces.