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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$93.9m
Last closeUS$11.55
High / Low (52 weeks)US$19.6 / US$10.8
Stock market listingTel Aviv Stock Exchange, US
Forecast net cash (US$m)4.3
Forecast gearing ratio (%)N/A
TeamTechnology
SectorTechnology

Price performance

%1m3m12m
Actual(9.3)(9.9)(34.9)
Relative *(4.3)(1.4)(34.4)

* % 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 14.2 7.0
2017A 78.2 13.9 10.4 116.0 10.0 9.1
2018E 83.6 14.4 10.4 113.3 10.2 8.7
2019E 94.0 16.6 12.4 133.4 8.7 7.4

Last updated on 23/08/2018

Investment summary

Over the last two years PNTR has won significant contracts in driver behaviour systems (DBS), connected car (CC) and sensor-based IoT monitoring systems. The group also recently agreed to work with Microsoft Israel to develop AI-enriched driver assessment tools. Cross-selling potential, prospects in new markets and geographies and high operating leverage gives PNTR strong earnings growth prospects. We believe that significant value has emerged in the shares following a c 38% share price decline since January peaks. Valuing the group at EV/EBITDA parity with the telematics sector (at 17 July 2018) gives rise to a multiple valuation of $20.0/NIS71.9 per share which is supported by our $18.1/NIS64.6 DCF valuation.

Last updated on 29/11/2018

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 29/11/2018

Key management

David Mahlab, CEO
Zvi Fried, CFO

Company address

4 Hamelacha Street,
Rosh Ha’ayin
48091
Israel
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