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Softchoice Corp T.SFTC

Alternate Symbol(s):  SFTCF

Softchoice Corporation is a Canada-based software and cloud focused information technology (IT) solutions provider. The Company designs, procures, implements and manages complex multi-vendor IT solutions. Its solutions include Cloud and Data Center, Collaboration and Digital Workplace, IT Asset Management, Network, and Security. Its services include Cloud Migration Services, Cloud readiness review, Cloud Managed Services, Security technology review, and Digital Workplace Solutions. Its Cloud and Data Center solutions include cloud migration, adoption & management, data center modernization, and application modernization. Its IT Asset Management solutions include software asset management, hardware asset management, and IT planning and procurement. The Company’s Cloud Managed Services solutions include cloud lifecycle, cloud governance, cloud operations, and cloud optimization. The Company's subsidiaries include Softchoice LP, Softchoice EmployeeCo Inc., and others.


TSX:SFTC - Post by User

Bullboard Posts
Post by a4shahon Feb 20, 2013 4:44pm
191 Views
Post# 21018834

Excellent Earnings for SO

Excellent Earnings for SO

At $15, MC is now around $300M. With $68M in cash, the EV is $232M. So PE ratio (without cash) is 8.5. And EV/EBIDTA is around 5.6. This is impressive considering that this is backward looking. If earnings are $1.5 next year (https://www.theglobeandmail.com/globe-investor/markets/stocks/analysts/?q=SO-T), then the PE ratio drops to 7.7!

Now, if you account for the growth rate of 15%, the PEG raio is around 0.5. The company is transforming to a services company (services revenues increased at 65% in the past quarter) where the margins are higher. Cloud computing is really picking up where they are big. Also, they could make an acquisition with all the cash they have which would boost growth rates.

Considering all this $15 seems really cheap since it could easily be a double from here.

Bullboard Posts