Promising time ahead for OCL.
The company is really positioning itself to cash in on the move by enterprises to use software-as-a-service. Short term revenue growth may be lower, but the pay-off is annuity style income for years ahead.
Bigger player, TNE, goes from strength to strength. It commands a Net Profit Margin of 14.5% (and says this is likely to improve), superior to OCL's 10%.
However, OCL are committing 23% of revenue to R & D, while TNE is pulling back below 20%. (TNE state that the industry average in 10 - 12%). This should give OCL some IP clout to command some pricing power for its quality products.
OCL seems to have gone unnoticed by analyst (so far). While TNE trades on a forward P/E of about 24 (assumes EPS of 10 cents), OCL trades on a forward P/E of about 15 (assumes 5 cents EPS). OCL has stated 2H2014 is expected to be stronger than 1H2014.
A re-rating is underway IMO.
Promising time ahead for OCL.The company is really positioning...
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Last
$17.52 |
Change
0.200(1.15%) |
Mkt cap ! $1.408B | |||
| Open | High | Low | Value | Volume |
| $17.38 | $17.70 | $17.38 | $1.311M | 74.89K |
Buyers (Bids)
| No. | Vol. | Price($) |
|---|---|---|
| 1 | 124 | $17.51 |
Sellers (Offers)
| Price($) | Vol. | No. |
|---|---|---|
| $17.66 | 737 | 1 |
View Market Depth
| Last trade - 16.10pm 25/11/2024 (20 minute delay) ? |
| OCL (ASX) Chart |
