Forum Topics EZZ EZZ H1 2024 Results

Pinned straw:

Added a month ago

While the company achieved an impressive top-line growth of 41%, the regression in profits tempered my enthusiasm, rendering the results somewhat average from my perspective.

The decline in profitability can be attributed to increased investments in product development and launches, with a particularly notable rise in marketing expenses. The escalating customer acquisition costs could pose a long-term challenge if not managed effectively.

The broader picture for me remains the company's current enterprise value of $8.4M against a forward earnings projection of $2.2M. This seems a little too cheap.

This valuation discrepancy provides a compelling reason to maintain holdings until the full-year results are published, at which point a more informed reassessment can be made.

acarbone1
a month ago

@JPPicard i agree with everything you said above. I bought EZZ on the back of them starting to sell in Chemist Warehouse and on Amazon. The marketing expense increase does scare me, they spent 3.5mil in the first quarter and 8mil in the second so what they choose to do in the third quarter will be of particular interest to me.

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