The global 5G market is expected to expand at a CAGR of 52.0% from 2022 to 2030. This makes it the fastest growing multi-billion dollar industry on the market today. With hundreds of billions worth of investments required for the rollout in the US alone due to the need for small tower deployments, infrastructure companies like $ESTW.V are capitalizing on this market growth. But why 5G? Speed in transmissions can approach 15 or 20 Gbps vs. 100 Mbps with existing 4G networks. With a growing dependence on cloud systems, it increases the speed at which we can access files, programs and remote applications. 5G latency will be ten times less than 4G (we can perform remote actions closer to real-time). Finally, the number of devices that can be connected on the same network is almost 100x higher than 4G.
This is why 5G is estimated to create over $12.3T of economic benefits over the next few decades. $ESTW.V is a well-established 5G infrastructure company that has already secured deals with some of the largest cell tower companies and 5G service providers in the US. Their Q1 2022 results were just released, and things are starting to look pretty interesting here.
- Revenue grew by 11% to $425K in Q1 2022 compared to $383K in Q1 2021.
- Gross profit was also up 5.3%, reaching $219K in Q1 2022 compared to $208K in Q1 2021.
- $ESTW.V had cash and cash equivalents of $1.10 million, compared to $0.10 million from the end of 2021.
Check it out here: https://ca.finance.yahoo.com/news/eastower-wireless-reports-q1-2022-210000231.html
These results are ending March 31, 2022, so it's not counting the 2 recent site deals (one of them being $ESTW.V’s largest site build to date). Furthermore, with the IPO now completed, they'll put more effort into growing the number of teams as they now have the cash to do so. I'm excited to see the following financial results, and considering how they've been able to grow in the past couple of months, the $5M market cap looks relatively undervalued at these levels. Definitely will be keeping a close eye out here.