Added to YB: 2024-09-09
Pitch date: 2024-09-06
ERD.NZ [bullish]
EROAD Limited
-6.5%
current return
Author Info
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Company Info
EROAD Limited provides electronic on-board units and software as a service to the transport industry in New Zealand, the United States, and Australia.
Market Cap
NZD 261.9M
Pitch Price
NZD 1.23
Price Target
N/A
Dividend
N/A
EV/EBITDA
9.14
P/E
191.81
EV/Sales
1.44
Sector
Electronic Equipment, Instruments and Components
Category
turnaround
EROAD: A resilient VMS business at free cashflow inflection, trading at just 1.4x EV/sales
ERD.NZ: Telematics VMS co. w/ 90% decline, new mgmt turnaround. Strong NZ presence, expanding AU/US. High retention (94.8%), 28% rev CAGR. Trades 1.4x EV/sales, 8% 2026 FCF yield. Risks: competition, costs, allocation. Upside: FCF growth, debt paydown, multiple expansion. 3 scenarios project 10-32% 2027 OE yield.
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