Pointer Telocation (PNTR)

Business description

Pointer Telocation is a leading provider of MRM services and products to the automotive and insurance industries. Key services are asset tracking, fleet management and monitoring goods in transit/IoT. Its main markets are Israel, Brazil, Argentina, Mexico and Europe.

Stock data

Market cap.US$126.1m
Last closeUS$15.70
High / Low (52 weeks)US$19.6 / US$8.7
Stock market listingTel Aviv Stock Exchange, US
Forecast net cash (US$m)6.8
Forecast gearing ratio (%)N/A

Price performance

Relative *(5)(15.7)50.1

* % Relative to local index

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Company news

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (fd) (c) P/E (x) P/CF (x)
2016A 64.4 9.8 6.6 81.1 19.4 9.5
2017A 78.2 13.9 10.4 116.0 13.5 12.4
2018E 87.7 16.0 12.0 144.5 10.9 11.9
2019E 98.6 18.5 14.1 169.2 9.3 8.3

Last updated on 14/03/2018

Investment summary

Pointer Telocation (PNTR) has, to a significant extent, transformed itself into a proprietary technology company over the last 18 months, resulting in major contract wins in driver behaviour systems (DBS), connected car (CC) and sensor-based IoT monitoring systems. The group’s ability to cross-sell new services to its extensive customer base as well as enter new markets and geographies, combined with high operating leverage, gives it above-average earnings growth potential. We now value PNTR at parity with the telematics sector, giving rise to a 6% increase in valuation to $20.8 (NIS71.8) per share.

Last updated on 14/03/2018

Industry outlook

The global telematics market (services and products) is forecast to grow at an 18.9% CAGR between 2015 and 2020 according to Driscoll & Associates, reflecting the growing sophistication and integration of telematics devices into business frameworks and increasing legislation requiring the use of telematics. Less developed markets such as Latin America and Africa are forecast to achieve higher CAGRs of 15.6% and 17.3%, respectively, during this period.

Last updated on 02/03/2018

Key management

David Mahlab, CEO
Zvi Fried, CFO

Company address

4 Hamelacha Street,
Rosh Ha’ayin
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