Now smart money is in the MiX
Premium market rating is driven by consistently strong performances and by a meaningful, profitable global footprint. The vehicle-tracking sector could be ripe for consolidation
Investors have quickly locked onto the positive signals coming from vehicle tracking and fleet management company MiX Telematics. The share price has more than doubled since touching a low of 292c in May. At current levels the market rating might be deemed a little rich. But MiX seems quite capable of delivering on CEO Stefan Joselowitz’s ambition of growing subscription revenue at a double-digit pace. MiX’s recent quarterly results issued guidance for the full financial year to end-March 2018 of subscription revenue up 14.5%, which would drive total revenue to about R1.7bn. Adjusted earnings were pencilled in at between 22c/share and 23.5c/share, putting MiX on a forward multiple of about 25 times. There might be a suspicion that MiX’s full-year forecasts are a tad conservative. A more immediate third-quarter forecast sets subscription revenue in the range of R362m-R367m, representing growth of 16.5%-18% over the corresponding quarter last year. MiX’s premium market rating is not o...
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.