"Main thing for me is both companies have recent statements...

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PhoenixAM2017

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17/05/18

20:50

Post #: 33174844
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Originally posted by DSD ↑

By way of comparison have added small cap IT stk DWS to list.
Bought some RXP at open i.e. 49.5c. Yes, its their 3rd downgrade but sense CEO knows he must have accuracy this last time or he's gone.
EPD and RXP very similar share # and share price.

I have RXP rev fy19 at 157m @ 13% margin = 20.4m ebitda. With SP at 49.5c EV/ebitda ratio is 90/20.4 = 4.4x.

I have EPD rev fy19 at 186m @ 9% margin = 16.7m ebitda. With SP at 46c EV/ebitda ratio is 87/16.7 = 5.2x.

I have DWS revenue fy19 at 123m @ 18.4% margin = 22.6m ebitda. With SP at $1.38 EV/ebitda ratio is 184.7/22.6 = 8.2x i.e. ratio is almost double that of RXP and (to lesser extent) EPD.

DWS has double the margins of EPD and 42% greater than RXP. If RXP and EPD can add even 2% to their margin it makes a big difference to the bottom line and of course the share price.

Both RXP and EPD ratios are very good and i expect SP of both small caps to do well.

RXP divs fy18 3c ffr.
EPD 1.5c ffr.

Main thing for me is both companies have recent statements stating that revenue/earnings going fwd will be significantly better. Plus EPD has a buyback each time SP dips below 45.5c.

disclosure: I hold both EPD and RXP.

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"Main thing for me is both companies have recent statements stating that revenue/earnings going fwd will be significantly better. Plus EPD has a buyback each time SP dips below 45.5c."

Very interesting comparison!

What I fear most came to reality today - Another downgrade!

After the HY18 share slump, RXP's CEO added more holdings at 49c/share (including 1.5c div), let's see whether he will add more this time.

Do you know what is the roughly split of EBITDA between traditional work and digital work? I don't think I read this information, maybe I missed.

RXP Price at posting: 49.5¢ Sentiment: Hold Disclosure: Held
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"Main thing for me is both companies have recent statements...

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