For a company with a revenue run-rate of $42M (H1 revenue was ~$21M), signing an agreement for $15M per year with guaranteed 10% annual growth is significant.

There's a concern that such large deals might reduce margins due to competitive bidding. However, EZZ's gross margins are healthy at 70% (according to their half-year presentation). 

While I think this agreement will lower margins somewhat, it should still contribute positively to the bottom line. Last year's NPAT margins were 10%. If we assume an 8% margin for FY25 and some organic growth, adding the $15M of this agreement, we could see revenue around $60M. With an 8% margin, that results in about $5M in NPAT.

At the current share price of $1.06 (up about 75% since I first posted my thesis on the company), and with $14M in cash, EZZ has an EV of $34M. This implies an EV/NPAT ratio of 6.8.

It still seems undervalued to me, so I'm happy to hold.