The Catapult Group Ltd (ASX: CAT) share price is up 11% to 88 cents today despite the sports analytics and software business releasing no specific news to the market.
Today’s share price rise could be the result of bargain hunters anticipating the company delivering a stronger-than-expected quarterly update later this month that could make the shares look cheap using conventional valuation metrics.
Catapult delivered $76.8 million of revenue in FY 2018 with more than $53 million of that in annual recurring revenue thanks to its software-as-a-service business model.
For FY 2019 Catapult is guiding for revenue between $86 million to $88 million and underlying core EBITDA of $11 million to $13 million.
Catapult currently has 188.4 million shares on issue to give it a market value around $166 million, which is just under 2x its forecasts for FY 2019’s sales.
For investors then Catapult looks worth keeping a close eye on.
Our experts here at The Motley Fool Australia have just released a fantastic report, detailing 5 dirt cheap shares that you can buy in 2020.
One stock is an Australian internet darling with a rock solid reputation and an exciting new business line that promises years (or even decades) of growth… while trading at an ultra-low price…
Another is a diversified conglomerate trading over 40% off it's high, all while offering a fully franked dividend yield over 3%...
Plus 3 more cheap bets that could position you to profit over the next 12 months!
See for yourself now. Simply click here or the link below to scoop up your FREE copy and discover all 5 shares. But you will want to hurry – this free report is available for a brief time only.
Motley Fool contributor Tom Richardson has no position in any of the stocks mentioned. The Motley Fool Australia owns shares of and has recommended Catapult Group International Ltd. 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 Scott Phillips.