With a forecast underlying EBITDA of $35-$37m with decent growth and likely to benefit from Corona virus i would expect the EV/EBITDA of ~18-20 which gives a mkt cap of ~750m or $2.22 as the current target.
This is a hard one in terms of financials given all the acquisitons. The latest guidance they have is pro forma underlying EBITDA of $35-$37m - note this is still a measure they have come up with internally as excludes one off acq costs etc
The company is in the telecommunications space having IPO'd in Feb 2019 with a plan to grow organically and by acq.
2019 was a big year in this regard with 6 acqs and the share price going from 25c at IPO to $2.
The acq have ranged from all cash to all share to a mix of both and as small as $450k to as large as $100m.
2020 has been quiet on this from but to be expected given COVID as well as needing to bed down the 2019 acqs.
I originally purchased based on the quality of the management team and their success in building M2 Telecomunications into a billion dollar company. They look to be doing the same with UWL, having made some great acquisitions over the past few months.
The aquisitions they have made all seem to be growing by about 30% plus per annum. They are all good recurring revenue models and UWL have done a great job of incentivising previous management and owners to stay on and build the individual businesses.
The business has $30m in cash and a further $60m available to borrow for other acquisitions that come up.
Mgmt are ex M2/Vocus and looking to replicate that it seems.
Have skin in the game including Vaughn Bowen buying $2.5m on market in 2019 from prices ranging from 30c to $1.60.
23-Apr-2020: Appendix 4C - Quarter ended 31 March 2020
At a glance (summary):
23 April 2020: Uniti Group Limited (UWL) is pleased to provide an overview of its March 2020 quarter cash flow and cash position, as reflected in the Appendix 4C which accompanies this announcement [click on link above for that].
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