Share Price: $ 0.83
Target Price: $ 1.18
Projected Returns: Capital growth
Capital Growth: 42.17%
Dividend Yield: 0
Total Return: 42.17%
• Revenue up 20%, EBITDA up 67% & cashflow up 34%
• Benefitting from sectoral growth and structural disruption
• Executing growth strategies towards a promising FY19
• High quality business model & experienced management team
• Fund, platform and trustee services continued growth
• Royal commission creating positive opportunities
OneVue (OVH) is an emerging financial services technology company leveraged to the burgeoning superannuation system in Australia. The company has grown since 2007 through selective acquisitions coupled with its own Research and Development, to create a company that is providing ongoing structural disruption. The company has carved out its niche as a trusted provider of back-and-middle office administration with deep multi-year and multi-faceted relationships across the financial services industry. With the recent royal commission putting a spotlight on AMP and the big four banks, independent fintech’s such as Onevue have continued to experience sectoral opportunity growth indicating a strong FY19.
Onevue’s FY18 highlights included a 20% revenue increase to $49.1(¥5,390)m. The companies EBITDA also saw a 67% increase to $7.5(¥770)m with consistent strategy execution. Onevue’s growth strategies increased cash flow up to $6.6(¥660)m, up 34% on FY17. All of Onevue’s business’s including their platform, fund and trustee models are in line with enhanced growth opportunities approaching 2019. Their core model of strategic capital redeployment is building towards a 20% EBITDA margin target. The experienced management team are delivering timely momentum building, with a sharpened focus and increased scale of operating leverage and capabilities. A transparent and sustainable revenue model is well positioned to take advantage of a large and expanding market, driving organic growth amongst current structural tailwinds and disruption.
Capri see’s Onevue as a future market disrupter at a time of opportunity. Its strong growth numbers and continued management focus on growing revenues indicates a positive outlook for FY19. Based on the consensus of external research, OneVue will potentially reach a target price of $1.18(¥110).