apsec buy rec

apsec have put a valuation on CRZ @5.71
Currently 4.77 Here is part of report
Catalyst - Strong and sustained
earnings growth
CRZ holds a market leading position within the Australian
market for online car retail, both within the
market for new and used vehicles. Approximately
80% of all time spent looking at automotive classifieds
websites around Australia was done on a CRZ
owned website. Having reached such a dominant
position it becomes increasingly difficult for competitors
to challenge without a structural shift or external
influence.
The company has shown an ability to grow revenues
and profitability in a predictable manner over a
prolonged period, showing itself to be capable of
managing rapid growth without suffering from the
deteriorating margins that so often go hand in hand
with it. CRZ reported strong growth in revenues and
profitability for the period ended 30 June 2011. At
30 June 2011 CRZ revenue stood at AU$ 153m, an
increase of 24% from the 30 June 2010 figure of
AU$ 123m and a cumulative increase over two
years of 59% when compared to the 30 June 2009 figure of AU$ 96m. EBIT stood at AU$ 81m at 30 June 2011, up from AU$
62m at 30 June 2010; an increase of 30% year on year and an increase of 93% over a two year period from the 30 June 2009
figure of AU$ 42m. Bottom line profitability (net income) has also grown strongly over the time period covered from AU$ 31m a t
30 June 2009 to AU$ 58m at 30 June 2011, an increase of 87% over a two year period.
Valuation
Our DCF Valuation model values CRZ at AU$ 5.71 per share, a significant upside to the current share price