Axsesstoday provides finance solutions to the rapidly expanding small business lending market. Founded in 2012, the company’s loan book has grown exponentially to over $300m today. Currently, AXL is trading on a 1 yr forward PE of 12.0x with EPS CAGR of over 20% p.a. in the foreseeable future. In our opinion, AXL offers outstanding value relative to its peers, such as soon to be listed Prospa.
Future catalysts include:
- Beneficiary of Royal Commission, as target SME customers continue to transition away from major banks.
- Rapidly gaining market share through compelling value proposition and innovative technology.
- Recently announced $200m securitisation warehouse is expected to materially reduce cost of funds and significantly lower equity requirements from 25% to 10%, enabling loan book growth of 2.5x.
- Opportunities to further expand business lending and enter new markets, i.e. Canada