Revasum SOI 92,125,073 , Mcap 156 mil ( Fully diluted ) , Cash 46 mil , EV will be 110 mil .
According to the prospectus forecast revenue for FY19 ( Financial year ending 30/06/19 ) will be 52 mil and EBITDA will be 4.1 mil . So at current share price its trading at 2 times EV/Ebitda and 27 times its earnings .
According to prospectus
"At Revasum we design and manufacture a variety of sophisticated systems that our customers use as part of themanufacturing process for semiconductor devices. Devices produced using our equipment include microchips,sensors, LEDs, RF devices and power devices which are commonly found in electronic systems and products youmay use every day, including automobiles, mobile phones and the countless connected electronic devices referredto as the “Internet of Things” (IoT).
Our customers are some of the leading technology providers to these end markets,and Revasum is well positioned to continue to expand our footprint in these fast-growing segments of the globalsemiconductor market.One of Revasum’s technological advantages, is the design and manufacture of systems which process silicon carbide (SiC),a strategically important, yet challenging material used in electrical devices. Our technology enables manufacturersof SiC-based semiconductor devices to reliably produce at higher yields than our competitors and lower the cost ofthe manufacturing process. The transition to SiC is necessary to produce devices with the electrical properties neededto enable emerging mega-trends.Two of these seminal technology trends are rapidly expanding key end markets for Revasum – the electrification ofautomobiles and the rollout of 5G mobile phone technology.
The world is in the early stages of the revolution in theelectrification of automobiles in the form of hybrid electric and fully electric vehicles, along with the entire globalinfrastructure required to support that industry. A number of major car companies have publicly committed to thedevelopment and commercialisation of hybrid and/or electric automobiles. In addition to the automobile sector,the global transition to 5G is also in its infancy, but has begun. Revasum is poised to benefit tremendously from theseshifts in technology that have the potential to impact our daily lives.Last, but certainly not least, IoT represents a third fast-growing end market for Revasum. There are billions of smalldevices that are required to connect to the ‘cloud’ of worldwide servers. Those devices are made on silicon wafersand require lower total ownership cost systems with better yield and throughput.Revasum is growing in part because these end markets are growing and in part because we work closely with keystrategic customers to ensure our products are developed to meet their needs. We align ourselves closely withtechnology leaders of these end markets in order to ensure that we develop new systems that provide continuouslyimproving capabilities to increase manufacturing yields and lower production costs.Revasum is incorporated in Delaware, United States. We have employees and agents in the United States, People’sRepublic of China (China), Taiwan, Japan, Korea and the European Union, which represent the major semiconductorproducing regions. "
RVS is the only ASX listed company in semiconductor industry with significant revenue and cash flow positive . Its managed by excellent management team with similar experiences and successfully developed and sold businesses for multi million dollars valuations in US .
IMO , this is a rare opportunity for ASX investors to be the part of Multi billion dollar Semiconductor sector . Nasdaq listed similar type of businesses are priced over a billion dollar Mcap . This is the type of stock which institutions will hold in their long term growth portfolios. I think they are waiting for the 1st half result and also they would like to be sure of the guidance going forward . Some instos (IFL ) already building huge positions in RVS . i.e. IFL holding 8 % stake in RVS now .
Its a multiyear growth stock for long term oriented investors .
All IMO
DYOR
RVS Price at posting:
$1.70 Sentiment: Buy Disclosure: Held
