Catapult International Group Ltd (ASX: CAT) shares hit a 52-week high of $1.57 today, but remain well short of highs above $4 printed in 2016.
The wild share price ride of the sports analytics and software-as-a-service (SaaS) group reflects how it has divided bulls and bears in the investment community.
On the one hand its low price-to-sales ratio looks a screaming bargain compared to SaaS peers such as Pro Medicus Limited (ASX: PME) or WiseTech Global Ltd (ASX: WTC), but on the other hand it has a disappointing track record of raising capital at ever lower share prices.
According to its latest Appendix 3B regulatory filing it has 190.9 million shares on issue to give it a market value of $287 million on just 3x 2019’s sales of $95.4 million.
The latest full year loss narrowed to $12.58 million and investors are probably bidding the stock up after it named ex-Amazon executive Will Lopes as its new CEO. A permanent CEO provides more certainty for the business and is likely to encourage the bargain hunters.
Catapult is targeting positive free cash flow by fiscal 2021. If it achieves this goal today’s investors could be well in the black.
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John Mackey, CEO of Whole Foods Market, an Amazon subsidiary, is a member of The Motley Fool’s board of directors. Tom Richardson owns shares of Amazon, Pro Medicus Ltd., and WiseTech Global.
You can find Tom on Twitter @tommyr345
The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of and recommends Amazon and Pro Medicus Ltd. The Motley Fool Australia's parent company Motley Fool Holdings Inc. owns shares of Catapult Group International Ltd. The Motley Fool Australia owns shares of WiseTech Global. The Motley Fool Australia has recommended Amazon, Catapult Group International Ltd, and Pro Medicus 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.