PAX Global Technology: High Margin, Strong Growth And Cash Rich - Our Top Pick For 2020

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About: PAX Global Technology Limited (PXGYF), Includes: INGIF, INGIY
by: DTF Capital
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DTF Capital
Long only, value, small-cap, mid-cap
Summary

PAX Global Technology is the third largest global point-of-sale terminal manufacturer behind Ingenico and VeriFone.

It is the most profitable, has the most impressive balance sheet and poised to post the strongest growth in the industry.

Yet, the company irrationally trades at 2x EV/EBITDA.

Meanwhile, Ingenico and VeriFone were recently acquired at 15x EV/EBITDA and 9x EV/EBITDA respectively.

Sky is the limit for PAX Global Technology. It is our top pick for 2020.

Investment thesis

Last year, Apple (AAPL) was our top pick, it gained a whopping 120%. This year, we believe PAX Global Technology ‘PAX’ (OTCPK:PXGYF) (0327.HK trades in the Hang