PBT Group keeps delivering


PBT Group keeps delivering


Published Date: 2021-11-24 | Source: INCE|Community | Author: The Finance Ghost

PBT Group keeps delivering

PBT Group is a data analytics company with a market cap of around R690 million. The share price is up nearly 55% year-to-date.

The company is particularly close to my heart for anecdotal reasons, as an article I wrote on PBT Group on my blog in 2020 launched my career as a financial writer for leading South African business publications.

The latest news is that PBT Group has issued a trading statement for the six months to September 2021.

Revenue is expected to be 18% - 22.8% higher, coming in at between R459 million and R478 million. The group is growing organically based on demand for services - always happy news for investors.

It's great to see an expanding operating margin as a result of high revenue growth, as this means that expenses are not growing as quickly as revenue is. With EBITDA (a good proxy for operating profit) up between 37.3% and 42.9%, there is clear margin expansion at PBT Group.

The EBITDA margin is now up to around 13% from 11.6% in the corresponding period.

Profit after tax has grown at a similar rate to EBITDA, so the group has a simple balance sheet that isn't full of distortions from depreciation and finance costs.

Headline earnings per share (HEPS) is up between 61.6% and 68.2%, with an expected range of 34.26 to 35.66 cents per share. With the share trading at around R7, the annualised Price/Earnings multiple is around 10x.

This is one of the better small caps on the JSE and has been a solid performer through the pandemic.


Similar Stories