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ENERGY ONE


Sector: Technology

Industry:

The thinly traded software developer comes from a subscriber pick and interests us because it has a disruptive business model that gives it access to the global trend of increased renewable energy consumption and battery use. It’s one to keep an eye on for when more stock becomes available.


WHY WE LIKE IT

WThe company has built a niche in Australia as a trading tool in the complex world of energy trading software used by generators, retailers and traders. The stock looks expensive, but it has a couple of factors going for it: first, the industry led by Australia is transitioning to 5 minute settlement times in 2021 because of the increasing use of batteries; second, and more important, the company has acquired two companies, which act as beachheads in the UK and Europe.

WHAT'S NEW?

When insiders sell stock “to help improve liquidity” as one subscriber told us, “I am always suspicious”. We agree. Last month, two directors, accountant Ian Ferrier and the CEO Shaun Ankers sold 700k shares at $4 to net $2.8m. In FY20 the group turned over $20m delivering $5.1m EBITDA, which sees climbing to $25m and $6.5m in the current year (FY21). With 50% market share in Australia, much of the growth is based on its prediction for European revenues to exceed 50% of total where Energy One, by contrast, has only 5% market share.
*FY21 forecast

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  • Radar Rating Unlock
  • Market Cap ($m)* 160.4
  • Dividend Yield (%)* 0
  • NET CASH ($M) 2.9
  • * Data as of 24 January 2021

Latest Research Summary

ENERGY ONE: RESEARCH TIP - OCTOBER 2020
15 Oct, 2020

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Previous Research

Research Date Radar Rating  
ENERGY ONE: RESEARCH TIP - OCTOBER 2020 15 Oct, 2020 e6dcee2c View Research