SA Transcripts • Fri, Nov. 7
There are 2 articles on this stock available only to PRO subscribers.
Speed Commerce's Slow Start To 2015 Shouldn't Continue
- Speed Commerce has been transitioning from a distribution company to an ecommerce company. From fiscal 2011-2014, ecommerce revenue has grown at a CAGR of 259%.
- Although in Q1 2015, revenue growth has drastically slowed. Ecommerce revenue only grew 0.2% y/y. Although expected, revenue was impacted by the departure of several customers.
- Despite a slow start to fiscal 2015, the company's future revenue growth prospects are bright. Revenue growth should accelerate due to a strong sales pipeline, sales team, and organic growth.
- The company's stock is fairly valued based on its current growth rate. However, revenue growth should accelerate which should increase investors' willingness to pay a premium.
- As the company fully transitions, the ecommerce business should become significantly more profitability. Due to the reasons above, Speed Commerce's stock is a very good value.
Speed Commerce: Transition From Distribution To E-Commerce Is An Overlooked Catalyst
- The ~25% YTD decline for Speed Commerce creates an asymmetric opportunity due to unwarranted concern over the secular decline in part of the distribution segment.
- E-commerce growth (with a 10x higher EBITDA margin) is ramping up while higher consumer electronics sales in the distribution segment are mostly offsetting lower software/video game sales.
- The upcoming decision by management regarding the future of the distribution segment (e.g. much smaller and more focused) is a significant and underpriced near term catalyst.
There are no Related articles on SPDC.
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Speed Commerce Inc is a distributor and provider of complete logistics solutions for traditional and e-commerce retail channels. The Company operates through two business segments distribution and e-commerce and fulfillment services.
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