Small Caps Stocks Uncategorized

Digital Turbine (APPS): Everything is Bigger and Better in Texas

A Small Cap Technology Company with potential 40%+ Revenue Growth in 2021

A Fundasy Opinion

I bought some already to be frank. The risks are there, obviously. The OEM’s and Carriers can try to cut them out. However with more partnerships forming, each big player becoming a smaller piece of the pie. Plus, Digital Turbine is increasing the number of products offered, and OEMs and Carriers don’t want to deal with individual advertisers themselves. Put all those reasons together and that’s why I can stomach the risky thesis.

The company is being currently valued around 8 times sales, 80 times current PE, and 30 times forward PE. However with Mobile Posse increasing revenues over 40% and providing reoccurring revenue, that number could be worse. The company is profitable and with the revenue growth that it will have in 2021, around a 30 times forward earnings is not terrible.

Put it all together, you have a company that is increasing revenues, margins and earnings. Not to mention, you have management that knew a good acquisition when it came along. It’s not a terrible price for years of growth ahead.

Fundasy Rating: Buy.

If you like content like this, subscribe for free email newsletters! If you don’t, it’s the same amount of work for me.

Leave a Reply

Fill in your details below or click an icon to log in: Logo

You are commenting using your account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s

This site uses Akismet to reduce spam. Learn how your comment data is processed.

<span>%d</span> bloggers like this: