BUY: CARTRACKShare price: 970cJSE code: CTKTHIS telematics company is a strongly focused security technology-driven business with plenty of capacity for global growth from solid profit platforms in SA and elsewhere in Africa.Curiously, sentiment for Cartrack’s shares appears to have stalled, the price registering a modest market rating in spite of a convincing profit performance and a robust outlook. Headline earnings increased 27% to 81c/share in the year to end-February, yielding a generous 50c/share gross dividend payout. Cash flow from operations came in at a reassuring R170m — equivalent to 157c/share.Most encouraging is that the company’s global active subscriber base grew 17% to 502,849 units, while its annuity attributes were reinforced by contract subscription revenue growing a sprightly 20% (and now representing 84% of total revenue).Cartrack already has a meaningful presence in Europe as well as start-up operations in Asia and the Middle East. What is comforting is that i...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.