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REA Holdings, at 1X…
Current, target price 62, 223 (+362%)
September 16th 2021
1 minute read
Sales up
Costs improved
1 minute read
Sales up
- Sales grew by 14% in the first half to 87.7 million dollars which is well above our forecast 77.5 million dollars.
- Average semester growth is 19%.
- We predict average growth of 10% in the next 12 months to bring sakes to 106.1 million dollars by the first half of 2022.
Costs improved
- The cash cost ratio improved to -80% & profit turned positive 3.1 million dollars.
- Average costs are at -86%.
- We use the latest -80% costs to predict a 7 million dollars profit in the first half of 2022.
Cashflow higher
Balance sheet, lower leverage
Valuation at 1X…
- Cashflow was higher at 11 million dollars with lower investment spending of -4 million dollars in the first half.
- Average cashflow is also at 11 million dollars.
- We use the same -4 million dollars investment which with higher sales & margins gives a 16 million dollars cashflow in the first half of 2022.
Balance sheet, lower leverage
- With investment gains, cash increased from 12 to 29 million dollars in the first half.
- Liabilities declined again from 328 to 321 million dollars so net cash improved further from -316 to -293 million dollars.
Valuation at 1X…
- REA capital from the last seven years worsened slightly to -111 million dollars in the first half.
- At the current value of 37 million dollars, based on our forecasts, it’s at only 0.07X assets with a 9% yield.
- Our cashflow forecast is 33 million dollars which is a 1X valuation. At 3X gives a 362% higher target price of 223 pence.
