GetSwift Ltd (ASX: GSW) has seen its share price soar by 193% since the start of 2017 – an astonishing achievement, beaten only by eight other companies.
The company’s share price was 28 cents at the end of December 2016, and currently stands at 88 cents. Despite the soaring price, the company’s market cap is still tiny at just $38.22 million. The share price has risen as high as 92 cents.
So why has this relatively unknown company rocketed so high so quickly, and can it be sustained?
So GetSwift is a tech company, providing simple software to manage companies’ delivery businesses, allowing them to track parcels and drivers, save time, fuel and vehicle costs while optimising the performance of drivers. GetSwift then charges their customers a small fee (29 cents) for each delivery, unless the client does more than 5,000 deliveries per month. Then Getswift offers discounted pricing.
The company already boasts a list of large clients including Oporto, Red Rooster, Mitre 10, Harris Farm Markets and tobacco firm Phillip Morris International. That’s the primary reason why GetSwift’s share price has rocketed this year. The company has signed deals with multiple large companies. Revenues are growing nicely, suggesting the company is on track and transactions are rising strongly. Looking forward, future growth is expected to be strong – 20x transactions in next 18-24 months, and targeting 50x in 3 years/36 months.
The company now covers 61 countries, and 467 cities – up from 392 at the end of December 2016. 68% of transactions still occur in Australia, but the company is forecasting that to fall to 15%, as 85% of transactions take place overseas in 2017-2018.
Could GetSwift become Australia’s next WiseTech Global Ltd (ASX: WTC)?
WiseTech also provides software to the logistics industry globally, and has a market cap of $2.12 billion, with a share price of $7.28 – up 67% over the past 12 months. It could if the company continues to make progress like it has in the past year or so, over the medium to long term.
GetSwift may even make a handy acquisition for WiseTech or one of its competitors.
Despite the soaring share price, there may still be plenty of life left in GetSwift. Investors probably want to keep an eye on transaction levels, with any fall a warning sign.
Where to invest $1,000 right now
When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*
Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.
*Returns as of February 15th 2021
The Motley Fool Australia owns shares of WiseTech Global. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.
- Why PWR Holdings Ltd could see its share price rise from here – July 21, 2017 12:11pm
- Fortescue Metals Group Limited share price sinks on native title decision – July 20, 2017 4:23pm
- 5 overlooked finance shares to add to your watchlist – July 20, 2017 2:33pm