2 Tech Players With High P/E – WTC And EML

  • May 11, 2019 AEST
  • Team Kalkine
2 Tech Players With High P/E – WTC And EML
While valuing a company, Price to earnings ratio (P/E ratio) is an important metric which is used by almost all types of investors. It denotes the market value of the company relative to its earnings. Therefore, high P/E ratio implies that the market participants are willing to pay a high price for the earnings of the company. Let’s have a look at two technological companies with high P/E ratio.
  1. WiseTech Global Limited
WiseTech Global Limited (ASX: WTC) is an information technology company trading at a P/E ratio of 135.31x. The company develops and provides software solution for the logistics industry on a global scale. It caters to more than 12,000 customers across 130 countries including all twenty-five of the twenty-five largest international freight forwarders globally. The stock is trading at a P/E ratio of 135.31x. In 1HFY19 results, the company posted total revenue of $156.7 million and net profit of $23.1 million. On yearly basis earnings per share increased from 5.3 cents per share (cps) to 7.6 cps. On the balance sheet front, total assets were reported at $762.7 million, and total liabilities stood at $374.9 million. In a recent change in the shareholding pattern of the company; Charles Gibbon, Fabemu No 2 Pty Ltd and Gibbon Family Holdings Pty Ltd have dumped a total of $3.34 million shares in a number of transactions. The present voting power stands at 5.47% from the earlier voting power of 7.1%. On 30th April 2019, the company announced the acquisition of Swedish firm; Xware. The market capitalisation of the company is A$6.96 billion. The 52-week high and low of the stock is A$25 and A$11.97 respectively. The stock made an intraday low of A$21.81 and closed at A$22.09 (down by 0.77%), as of 10th May 2019. In the last one year, the stock has delivered a return of 72.19%, and the YTD return stands at 28.71%. EML Payments Limited EML Payments Limited (ASX: EML) is an ASX listed payments processing company that helps to serve businesses or consumers with more efficient, secure and transparent payment process from start to finish. The company’s financial technology provides solutions for gifts, payouts, incentives etc. The stock is trading at a P/E ratio of 180.36x. In the recent 1HFY19 results, the company posted revenue of $47.19 million with EBTDA of $13.74 million. The net profit for the reported period stood at $2.57 million. The basic earnings per share increased from 0.83 cps to 1.05 cps compared to the pcp. The total assets on the balance sheet were reported at $512.75 million, and total liabilities stood at $372.09 million. On 23rd April 2019, the company announced that it had signed a multi-year agreement with bet365 to provide payment provision for a bet365 branded reloadable card program. EML Payments expects gross debit volume to revenue conversion rate to be according to the company’s average for the general-purpose reloadable segment. The market capitalisation of the company is A$505.51 million. The 52-week high and low of the stock is A$2.1 and A$1.16 respectively. The stock made an intraday high of A$2.04 and closed at A$1.99, as of 10th May 2019. In the last one year, the stock has delivered a return of 71.19%, and the YTD return stands at 34.67%.

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