It's a little strange there is pretty much absolutely zero value attributed to their tech which is world leading.
Revenue and cost Numbers post diverstment of consulting are not very transparent but sifting through the preso :
- current sites are 45 at a stated average of $60-80k per site. So let's say $3m per annum. Current saas revenue
- rebaselined costs are 30 employees so let's say $4.5m staff costs plus office etc $5-6m cost base
- pipeline of 75 sites from just their own direct sales team (this does not include erm, ordnet, or HDR sales) potential for a further $5m annual revenue over 12 months
- assume same pipeline from sales partners over 12 months gives another $5m revenue
- sales updates in half yearly give me high confidence of multiple small site conversions
- cost base fixed due to saas model
Very realistic in 12 months could be $13m revenue v $6m costs so $7m ebit
X 12 multiplier gives 80m+ market cap or 5 bagger
Then add a 24 months blue sky overlay for a couple of the bigger multi site deals they are going after sales could progress at similar rate for a few years though bigger deals will have longer lead times. I see this becoming a 200-300m company.
Very little downside risk due to cash and no dilution risk
EVS Price at posting:
7.0¢ Sentiment: Buy Disclosure: Held
