Over the past five months Cartrack has decelerated from its end-February high of R21.45. On Tuesday the share briefly dipped under R14 before revving back up to R16.75. The market rating, however, still remains modest for such a fast-growing and cash-generative contender, the share price reflecting a trailing earnings multiple of about 16.7 times and offering a fair yield of 2.75%. Over the past five years, the fleet-management and vehicle-tracking specialist has managed an enviable compound five-year subscriber base growth of 21% and compound five-year subscription revenue growth of 26%. More reassuring, annuity income makes up 88% of total revenue. Cash conversion has been good, while product development and innovation have also been impressive. Why then is there even the slightest trepidation in the market? Possibly, the overriding cynicism in the market around small-to mid-cap companies has got investors interrogating every line in the recently released annual report. If there i...

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