A value smallcap with earnings momentum

Livewire Exclusive

This smallcap has seen EPS growth of 30% pa for four years, yet the price has barely moved and the stock still trades on a PE of 8. In this exclusive two-minute video, Romano Sala Tenna of Katana provides explains why EPS could jump another 45% this financial year.

Key points

  • Growth prospects in the short-term, medium-term and long-term.
  • One key driver is sales opportunity from the ‘rehabilitation’ of clients’ credit scores. 40,000 have been processed, with 120,000 to follow. Has signed with a databse that gives access to 2.6 million potential leads.
  • Founder, and MD, Keith John has sold 2 businesses to Credit Corp in the past.
  • Average EPS growth has been 30% pa over last 4 years, share price has only grown 40% in this time.
  • Still trading on PE of 8 times earnings.
  • Based on recent accretive acquisition, Katana forecasting EPS growth of 45% over next 12 months

Read more

For Katana’s full thesis on Pioneer Credit, read: Is this the next Credit Corp?

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