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Linx S.A. Grows Revenue But Pandemic Clouds Gather

May 05, 2020 3:00 PM ETLinx S.A. (LINX)4 Comments


  • Linx S.A. went public in June 2019, raising $308 million.
  • The company provides businesses with a variety of software and hardware products for point-of-sale and e-commerce uses.
  • LINX has grown impressively but that growth is now is serious question with the effects of the Covid19 pandemic on its customer base.
  • My bias on the stock is Neutral.
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Quick Take

Linx S.A. (NYSE:LINX) went public in June 2019, raising approximately $308 million.

The firm provides a range of point-of-sale and e-commerce software and products to businesses in Latin America.

LINX is growing revenue and gross profit while retaining net profitability. However, the lack of communication, the delay in filing its annual report and the effects of the Covid19 pandemic on its Brazil and other operations means my bias on the stock is Neutral.


São Paulo, Brazil-based Linx was founded in 1985 to provide software services to retailers in Latin America, including payment services, business, and point of sale or point of service [POS] management solutions, and e-commerce services.

Management is headed by CEO Alberto Menache, who has been with the firm since 1991 and is also a member of the board of directors of Arco Platform.

Linx has developed an integrated software platform for retailers of all sizes that offers business management tools, payment solutions, e-commerce as well as omni-channel applications, including mobility, customer relationship management, enterprise resource planning, receipt and payment processing, and connectivity solutions, among others.

Below is a brief overview video of Linx Analytics:

Source: Linx

The firm’s core product line - Linx Core - provides retailers with integrated business management software solutions.

Linx Digital represents an e-commerce platform, designed to improve an omni-channel purchasing experience for both parties - essentially allowing retailers to interact with clients through a variety of channels, including physical stores, mobile applications, and the Internet.

Linx Pay Hub offers payment processing solutions that work closely with its Linx Core and Linx Digital product lines.

Below is an overview graphic of the company’s product lines:

Source: Company registration statement

Management states that its platforms have achieved a 41.3% market share in Brazil for 2017, according to a 2018 International Data Corporation [IDC] survey.

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This article was written by

Donovan Jones profile picture

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Comments (4)

I'm no expert, but I tend to believe that COVID-19 fears will accelerate the digitization of the brazilian retailers. I also see this partnership with Mercado Libre positively : ri.linx.com.br/...

I recently entered the stock and plan to increase my position gradually.
If I am not wrong the June 2019 thing was a follow on . It was public in Brazil already .
Just to add, somebody just bought 46,875 shares in the aftermarket at 3.59
Which is .10 above the close.
Jefferies has a very recent April 1st $5 price target on it.
You have a $2 target. Why such radically price targets?
I mean we are talking 250% difference! Should the Jefferies analyst be fired?
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