Kaleyra: Undervalued, Competitive, And A Potential Acquisition Target

Dec. 03, 2021 8:46 AM ETKaleyra, Inc. (KLR)ERIC, NOK24 Comments
Chetan Woodun profile picture
Chetan Woodun


  • The CPaaS market is a highly dynamic one, with a lot of competition as well as consolidation through M&As.
  • Kaleyra, contrarily to Vonage generates much higher growth, but, still, shares are in negative territory.
  • This could be due to its lower gross margins and high debt/equity metric, but things are changing with profitability improving and management having a clear strategy for sustainable growth.
  • At the current share price of $10, it is attractively valued relative to the IT sector by over 60%.
  • Its small market cap and undervaluation could also turn it into an acquisition target, just like Vonage, which was acquired by Ericsson.

IP Telephony cloud pbx concept, telephone device with illustration icon of voip services

Yanawut/iStock via Getty Images

This thesis comes in the footsteps of my recent piece entitled "Together With Vonage (NASDAQ:VG), Ericsson (NASDAQ:ERIC) Is Paving The Way For The Metaverse". Now, Kaleyra (NYSE:KLR) just like

Data by YCharts

This article was written by

Chetan Woodun profile picture
My aim is to provide differentiated insights, whether it is for investing, trading, or informational reasons. For this purpose, I am not a classical equity researcher or fund manager, but, I come from the IT world as the founder of Keylogin Information and Technologies Co. Ltd. Thus, my research is often backed by analytics and I make frequent use of charts to support my position.I also invest, and thus, in this tumultuous market, I often look for strategies to preserve capital. As per my career history below, I have wide experience, initially as an implementer in virtualization and cloud, and I was subsequently a team leader and project lead, mostly working in telcos.I have also been a mediocre entrepreneur in real estate, and a farmer, and like to dedicate at least 5 hours per week to working on a non-profit basis. For this purpose, I regularly contribute peer reviews and opinions for enterprise tech and help needy families by providing sponsored work.As for Research, I started with Tech stocks before going Multi-Tech with Fintechs, Biotechs, and Cryptotechs.I have been investing for the last 25 years, initially in mutual funds where the "learned economists" would always advise you to "think long term". Got a lot of experience in the 2008/2009 downturn when I lost a lot. Since then I do my own research and have fallen in love with Seeking Alpha because of the unique perspectives it provides to someone investing hard-earned money as well as access to some of the best financial advisors.We live only once but can have many "investment lives" especially when investing in individual stocks.

Disclosure: I/we have a beneficial long position in the shares of KLR, ERIC, XLK, QQQN either through stock ownership, options, or other derivatives. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.

Additional disclosure: This is an investment thesis and is intended for informational purposes. Investors are kindly requested to do additional research before investing.

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