NexJ Systems Inc NEXJF

Primary Symbol: NEXJX

Technology Software - Application

NexJ Systems Inc delivers enterprise customer management solutions to the financial services and insurance industries. The company's solutions include Customer Relationship Management (CRM) for financial services and insurance; Customer Process Management (CPM) for client onboarding and Know Your Customer (KYC), and Customer Data Management (CDM) to deliver a view of customers across the line of business and regional data silos. Its geographical segments include the Americas, EMEA (Europe, the Middle East, and Africa), and the Asia Pacific.

OTCPK:NEXJX - Post by User

NexJ Systems Inc

Bullboard Posts

Post by 93Darkhorse93on Feb 17, 2017 8:40am

327 Views

Post# 25859962

Peer Group Valuation Much Higher!

Totally agree with your point on bringing in new investors as you approach 100M market cap.

So on Valuation; the Software and IT group trades on average 20x Forward P/E, this includes large cap names that essentially have an organic growth rate of 0% and can only grow through acquisition.

Seeing that NXJ has superior organic growth north of 20% they should trade at a premium to the peer group, say 25-30x P/E.

With that said I estimate 0.35 EPS in 2017, so slap a 25-30x multiple on that and you get a range of 8.75-10.50/share.

You are right it has doubled, but.... the underlying business fundamentals have improved faster than the underlying stock price. Could easily double again just on valuation catch up.

LONG.