The WiseTech Global Ltd (ASX: WTC) share price may have come under pressure today but it is still one of the best performers on the benchmark ASX 200 index this year.
Since the start of the year the logistics solutions company's shares have more than doubled in value with a 103% gain.
Why has WiseTech Global doubled this year?
Investors have been scrambling to buy WiseTech Global's shares this year following a series of earnings accretive acquisitions and yet another strong full year result in FY 2019.
In respect to the latter, in August WiseTech Global posted a 57% increase in total revenue to $348.3 million and a 33% lift in net profit after tax to $54.1 million.
Founder and CEO, Richard White, advised: "We continued to deliver high quality growth in FY19 with revenues up 57% to $348.3m and EBITDA up 39% to $108.1m, a reflection of our strategy to accelerate WiseTech's global growth and industry penetration, driven by geographic expansion, relentless innovation and deepening product capability, all of which saw usage by the world's largest logistics providers increase."
At the end of the period the company reported that all 25 of the top 25 Global Freight Forwarders were now customers, as were 43 of the top 50 global 3PLs.
Whilst this might sound like it is running out of growth opportunities, this is far from the case. Mr White explained that "global penetration is still in the early stage with significant runway for years to come."
He added: "With the addressable market in technology for global logistics in the hundreds of billions and the spend on digital transformation hundreds of millions more again, we are moving fast to leverage our lead. Expanding out from our stronghold of international logistics and complex cross-border compliance, we are deepening our reach across the supply chain and putting in place the key technologies and assets to build out powerful ecosystems."
In light of this growing demand for its platform and its ultra-low churn rates, he expects the company's growth to remain strong in FY 2020 and has provided guidance for revenue growth of 26% to 32% and EBITDA growth of 34% to 42%.
Is it too late to invest?
Whilst its shares are undoubtedly expensive and better entry points may emerge further down the line, I believe WiseTech Global would still be a fantastic buy and hold option for investors given its positive long-term outlook.
Incidentally, WiseTech Global isn't the only company to have doubled in value this year.
