SLI Systems (SLIZ)

Business description

SLI Systems' core products are e-commerce site search and navigation tools that learn from customer behaviours to improve the relevance of search results and therefore increase sales conversion.

Stock data

Market cap.NZ$21.2m
Last closeNZ$0.34
High / Low (52 weeks)NZ$0.4 / NZ$0.2
Stock market listingNZ
Forecast net cash (NZ$m)7.1
Forecast gearing ratio (%)N/A

Price performance

Relative *65.059.6(19.4)

* % Relative to local index

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Company news

Y/E Jun Revenue (NZ$m) EBITDA (NZ$m) PBT (NZ$m) EPS (c) P/E (x) P/CF (x)
2016A 35.7 1.1 0.7 (0.4) N/A 28.0
2017A 32.0 (0.5) (0.8) (3.0) N/A N/A
2018E 33.5 2.7 2.4 2.8 12.1 11.0
2019E 34.5 2.0 1.7 1.7 20.0 27.7

Last updated on 13/03/2018

Investment summary

SLI Systems has substantially outperformed our expectations, delivering its maiden H1 period of profitability, driven by outstanding net revenue retention and substantial cost savings. The company’s imminent shift to a more indirect business model is likely to compress near-term margins and success is crucial to longer-term prospects. Nevertheless, the depressed share price does not demand steep growth assumptions for investors to see a return.

Last updated on 13/03/2018

Industry outlook

The global retail e-commerce market is estimated to be $3.6tn by 2019, growing at c 16% CAGR from $1.7tn in 2017, indicating increasing demand for SLI’s product suite. SLI estimates its global market opportunity at $1.7bn. The competitive landscape is crowded, however, with direct competition, e-commerce platforms and in-house solutions in the competitive mix.

Last updated on 02/03/2018

Key management

Greg Cross, Chairman
Chris Brennan, CEO
Rod Garrett, CFO

Company address

78-106 Manchester Street
Christchurch 8011
New Zealand
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