Beyond is subject to a takeover at 0.7744c per share, just under my earlier valuation that mentioned the chance of a takeover.
Makes sense since the ASX listing added no value. It was too illiquid. Happy to be a holder IRL - didn't have the patience to hold on Strawman.
Beyond International is most famous as the producer of Mythbusters but they create and distribute a lot of other content - Pooch Perfect, Deadly Women etc.
FY22 showed great turn-around in the second half, returning to solid profit. Full year PAT (continuing ops) of nearly $4m! On a PE of 15, I get a value of 95c! And if you do the numbers on the second half alone, it would be much higher.
Loss making digital-marketing division, Beyond D, was sold in Nov 21 and its 5 months of losses are excluded from continuing operations results. Solid cash could support a dividend or buy-back but will more likely fund organic growth.
Senior management has been buying at much higher prices than current. The market has broken down, probably because the main buyers were insiders and we are in a blackout period but it is also possible that insiders are selling.
My valuation is based on a MC of ~$50M and 61M SOI, rounded down The MC can be justified by profit generating potential and the asset value of the back catalogue.
Very low liquidity.
FY22 numbers show a stunning turn-around.
PAT from continuing operations of $3,873k for the year. MC at recent prices is only $20M. Based on a PE of 15, the MC would be $58M and share price target 95c. Cash at bank of $8.7M would support a dividend or share buy-back but none announced.
Note, their loss-making digital marketing business, Beyond D, has been excluded as non-continuing - sold in Nov 21.
There is a lot of content owned by Beyond and they are a possible take-over target. NTA is 38c / share but that undervalues their back catalogue. Annual report is worth a read in full.
Main issue is lack of liquidity. I suspect that the directors will resume buying now that the results are out but very little on offer.
23 August 2022 - FY22 Results Guidance
"Beyond International Ltd (ASX:BYI)) expects to report earnings before interest and tax (EBIT) in the range of $5.8m and $5.9m for the financial year ended 30 June 2022. The EBIT for the previous corresponding period was $3.4m an increase of 71% to 74%. The final FY 22 results are subject to completion of the independent audit."
This sounds great for a company with a MC of about $19M. EBIT in H1 was $2.07M so H2 is a big increase. It will be interesting to look at the rest of their numbers when the full report comes out.
I picked up some BYI IRL recently at 40c and below. Very happy to hold long term.
Note - very low liquidity in this stock but some chance that they will be taken over by a major who wants to own their content. There is also a fair chance that senior management will resume buying once results are out and the blackout period is over.