Stargroup (ASX:STL) offers a compelling investment with its current market capitalisation of $18.1 million being lower than its net assets of $25 million including deferred tax assets.
For comparative purposes, Canadian listed Directcash Payments Inc (TSE:DCI) has net assets of $100 million yet a market cap of circa $520 million.
If Stargroup were to have the same market cap to net asset ratio as its Canadian peer, its market cap and consequently share price would be circa 7x higher.
The recently completed acquisition of Indue Limited boosted Stargroup’s ATM network to 2,414 making it the second largest independent provider behind Directcash Payments Inc.
Stargroup’s guidance for FY18 is revenue of $17-18 million, EBTIDA of $4-5 million and NPAT of $1.5-2 million.
Todd Zani, CEO, commented: “Our current annualised revenues are circa $15million and our projected FY18 revenues are $18million
“This is not an unrealistic expectation of the anticipated organic growth across our four divisions.”
Importantly, Zani and his family are a major shareholder in Stargroup with 9.48%.
Announcement URL: http://www.proactiveinvestors.com.au/companies/news/178425/stargroup-makes-a-compelling-valuation-178425.html
About Star Payment Systems:
Financial technology company Stargroup Limited is the only ASX listed company deploying ATM machines in Australia and importantly, the only listed ATM company having a direct ownership interest in the manufacturer of its ATM technologies, namely NeoICP, a South Korean private company.
Stargroup Limited became the exclusive distributor of the cashPod ATM range including the recycler ATM, back office and payment technologies in Australia for the next 5 years on 7 August 2015.
Stargroup Limited, via its wholly owned subsidiaries, StarPOS and StarApps, is also an EFTPOS and payWave technologies provider and developer of the source code in its terminals via its 5 year distribution agreement with West International AB, a Swedish NASDAQ listed company, to distribute next generation EFTPOS payment terminals and solutions in Australian and New Zealand.
Go to Company Profile for: Star Payment Systems
Announcement Contact: [email protected]