Human services group, Millennium Services Group (ASX:MIL), has reported better than forecast quarterly revenue and ended the quarter effectively with a zero net debt position:
• Q421 revenue came in 14% above our estimates, which were conservative given a COVID-impacted base and continued COVID disruptions.
• This represents a 3% increase for FY21 and a higher base for forecast years, resulting in a similar increase across the forecast period.
• Using our current GP% and operating cost assumptions our underlying NPAT/EPS assumptions increase 12%-15% over the FY22-FY24 forecast period as a result of these changes.
• MIL is trading on an FY21 PE of ~7.0x and EV/EBITDA of 2.7x. Our assessed peer group trades on an average 4.8x FY21(f) EV/EBITDA, offering 80% upside to the current share price on a multiple-based valuation.
19 Jul 2021
Q4 sales beat and effecively zero net debt
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Q4 sales beat and effecively zero net debt
Millennium Services Group Ltd. (MIL:ASX) | 0 0 0.0% | Mkt Cap: 63.8m
- Published:
19 Jul 2021 -
Author:
Finola Burke | John Burgess -
Pages:
5
Human services group, Millennium Services Group (ASX:MIL), has reported better than forecast quarterly revenue and ended the quarter effectively with a zero net debt position:
• Q421 revenue came in 14% above our estimates, which were conservative given a COVID-impacted base and continued COVID disruptions.
• This represents a 3% increase for FY21 and a higher base for forecast years, resulting in a similar increase across the forecast period.
• Using our current GP% and operating cost assumptions our underlying NPAT/EPS assumptions increase 12%-15% over the FY22-FY24 forecast period as a result of these changes.
• MIL is trading on an FY21 PE of ~7.0x and EV/EBITDA of 2.7x. Our assessed peer group trades on an average 4.8x FY21(f) EV/EBITDA, offering 80% upside to the current share price on a multiple-based valuation.