PRTH
Brought some PRTH today at $6.89, this payments plays I find super attractive here. Here's why.
1) PRTH last quarter reported .26 versus .11 in the year ago period. In q1 they reported .22 versus .03. So through 6 months ended .48 versus .14 in outstanding EPS growth in my opinion. Based on guidance I expect .55-.65 eps in the 2nd half which will once again show impressive comps which should put earnings for the year in the $1.03-1.13 this FY, I expect continued earnings growth probably $1.25-1.30 in the next FY Conservatively. All of this for about 6x this years earnings with great growth. I think PRTH deserves at minimum a 10 PE which could put fv in the $12-13 range over the next year.
2) PRTH is also growing revs solidly. this is not just and earnings story but pretty solid top line growth of 10.2-12.5% is being guided for which is also a plus. But this growth has been going on for years here. So as you can see by the numbers below these guys consistently have been growing revs which is a significant plus.
FY 21 515 Million
FY 22 664 Million
FY 23 756 Million
FY 24 880 Million
FY 25 970-990 million Estimated.
Conclusion: I like PRTH which in my opinion is a very good growth story in the payments space at a very attractive valuation, which is trading in my opinion a significant discount to what I believe Fair Value is. Will add more on weakness. All is just my opinion, and I could always be wrong though.
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