Tenet Fintech Group Inc. C.PKK

Valuation

[lscfa]

Assumptions:
2 scenarios, 2021 revenue is $85 million or $100 million.
outsourcing revenue is steady or declines as co. de-emphasizes it
outsourcing gross margin increases to 20% (per past CEO comments)
platform revenue grows, 100% profit per MD&A (because costs are in corp. costs e.g. royalty fees)
 

 

 

Total revenue 2021	85,000,000	85,000,000	100,000,000	100,000,000
Outsourcing rev	60,000,000	40,000,000	60,000,000	40,000,000
20% margin	12,000,000	8,000,000	12,000,000	8,000,000
Platform rev	25,000,000	45,000,000	40,000,000	60,000,000
Cash operating exp.	(15,000,000)	(15,000,000)	(15,000,000)	(15,000,000)
ebitda	22,000,000	38,000,000	37,000,000	53,000,000
Diluted shs	160,000,000	160,000,000	160,000,000	160,000,000
ebitda/sh	$0.138	$0.238	$0.231	$0.331
Multiple	15	15	15	15
SH value	$2.06	$3.56	$3.47	$4.97

[bmo1212]

Unfortunately, with these results, the best case for this stock is it will be stuck in neutral for another 6 to 12 months.

[lscfa]

Q1 results deadline May 31.