RE:RE:It’s time for a turnaround!jdsd0517 wrote: I don't get it.
This company has increased share count by over 75% since the beginning of 2020. If they keep doing that, then even if they dramatically increase the value of the business, then the stock price is going to get knee capped by the dilution.
If they don't, it's hard to think about a company that generates $8m of cash flow per quarter and has an enterprise value of $1,4 billion (at the current stock price).
What am I missing? Looking at this after coming over from Hire Technologies...apparently they share directors (and a playbook, by the looks of it).
When looking at operating cash flows, you should exclude working capital changes (mostly higher account receivables due to growth). If you do that, you're at close to $19M for the last quarter, $76M/year. At that rate, even at an EV of $1.4B, it's about 18x cash flows which isn't that crazy for their sector and growth rate.
They also pre-announced a run rate of $100M EBITDA, which would put EV/EBITDA around 14x, which isn't that high considering the growth rate. The pre-announcement for the full year would also mean another extra $2Mish in cash flows for Q4 compared to Q3, and revenues around $112M.