Calculating & Accounting Machines (No Electronic Computers)
Cantaloupe, Inc., a digital payments and software services company, provides technology solutions for the unattended retail market. The company offers integrated solutions for payments processing, logistics, and back-office management. It also provides ePort, an integrated payment device that is deployed in self-service, unattended market applications, such as vending, micro-markets, amusement, arcade, commercial laundry, air/vacuum, car wash, and others, which facilitates digital payments; and integrated software services for payment or asset tracking devices. In addition, the company offers G11 cashless kit, a 4G LTE digital payment device or payment and consumer engagement applications; G11 chip kit, a digital reader that accepts contact EMV (chip cards) and contactless EMV (tap) payment methods; Engage series comprising Engage and Engage Combo, which are digital touchscreen devices that provides networking, security, and interactivity payment methods. Further, it provides self-checkout kiosks,?smart store?concepts, and the Cantaloupe Go management platform comprising Go Mini, Go MiniX, Go Plus 100, Go Plus 200, Go Plus 300, Go Max, Cooler Café, Smart Market, and Go Portal, a robust cloud-based platform, as well as Go consumer mobile app, loyalty programs, campus card integrations, digital ad-management, and data warehouse services. The company was formerly known as USA Technologies, Inc and changed its name to Cantaloupe, Inc. Cantaloupe, Inc. was incorporated in 1992 and is headquartered in Malvern, Pennsylvania.
Discounted Cash Flow Valuation of Cantaloupe, Inc.
Growth
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Discount
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Multiple
g\r | +10% | +11% | +12% | +13% | +14% |
---|---|---|---|---|---|
0% | 10 | 9 | 8 | 8 | 7 |
+1% | 11 | 10 | 9 | 8 | 8 |
+2% | 13 | 11 | 10 | 9 | 8 |
+3% | 14 | 13 | 11 | 10 | 9 |
+4% | 17 | 14 | 12 | 11 | 10 |
Years | 0 | 1 | 2 | 3 | 4 | 5 | 6 | 7 | 8 | 9 | 10 | TV |
---|---|---|---|---|---|---|---|---|---|---|---|---|
FCF | $9.208M | $11.13M | $13.26M | $15.56M | $17.98M | $20.46M | $22.93M | $25.29M | $27.45M | $29.3M | $30.77M | $307.7M |
DCF | $9.678M | $10.02M | $10.23M | $10.28M | $10.17M | $9.914M | $9.508M | $8.973M | $8.33M | $7.606M | $76.06M | |
Value | $170.8M |
In the chart Earnings are multiplied by this value.
High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.
Years | 06-2015 | 06-2016 | 06-2017 | 06-2018 | 06-2019 | 06-2020 | 06-2021 | 06-2022 | 06-2023 | TTM |
---|---|---|---|---|---|---|---|---|---|---|
Net Margin | -3% | -9.7% | -2.4% | -9% | -35% | -25% | -5.6% | -1.2% | 0.0041% | 4.6% |
ROA | -0.33% | -1.7% | 0.14% | -4% | -17% | -22% | -3.5% | -0.59% | 0.28% | 4.2% |
ROE | -3.3% | -14% | -3.8% | -8.4% | -45% | -42% | -6.2% | -1.5% | 0.0061% | 6.7% |
The average Net Margin over the past 5 years is -12.73%.
The trend of Net Margin over the past 5 years is +4.78%.
The average ROA over the past 5 years is -7.72%.
The trend of ROA over the past 5 years is +2.51%.
The average ROE over the past 5 years is -17.21%.
The trend of ROE over the past 5 years is +5.96%.
Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.
Years | 06-2015 | 06-2016 | 06-2017 | 06-2018 | 06-2019 | 06-2020 | 06-2021 | 06-2022 | 06-2023 | TTM |
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Debt FCF | -1.60 | 0.48 | -0.70 | 4.23 | -0.77 | -1.37 | 2.40 | -0.87 | -20.16 | 4.31 |
Debt Equity | 0.05 | 0.05 | 0.11 | 0.25 | 0.22 | 0.23 | 0.10 | 0.10 | 0.24 | 0.22 |
MIN | ||||||||||
Graham Stability | - | - | -43% | - | - | - | - | - | - | -43% |
The Debt/FCF trailing twelve month is 4.31.
The trend of Debt/FCF over the past 5 years is -3.39.
Graham’s Stability measure stands at -0.43.
Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.
Years | 06-2016 | 06-2018 | 06-2020 | 06-2022 | Trend |
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Revenue | 18% | 13% | 14% | 19% | -3% |
Net Income | - | - | - | - | - |
Stockholders Equity | 17% | 2.9% | 19% | 5.1% | -0.59% |
FCF | - | - | - | - | - |
The Revenue CAGR over the past 5 years is +12.95%.
The trend of Revenue growth rate over the past 5 years is -3.05%.
The Earnings CAGR over the past 5 years is -.
The trend of Earnings growth rate over the past 5 years is -.
The Equity CAGR over the past 5 years is +2.93%.
The trend of Equity growth rate over the past 5 years is -0.59%.
The FCF CAGR over the past 5 years is -.
The trend of FCF growth rate over the past 5 years is -.