After a good FY announcement boasting $168.3m NPAT, up 16.5%, let’s do some quick sums to see what the share price could be worth.
Current MC at the time of writing is $4,267m (share price of $26), less cash equivalents (current assets – current liabilities) of $252m, divided by NPAT of $168.3m gives a ratio of 23.85. That’s a good deal for a company with such a growth history.
If they were to continue to grow at such a rate, they might command a ratio closer to 26.5 (which is conservative based on the fact that the growth isn’t guaranteed, as it could be with a subscription based business with investment in sales). Such a ratio would put the share price closer to $28.
Given the above, without delving too much into the details of the most recent presentation, guidance and outlook, I’d say these are a buy at $26.