Pitch:
– Provider of SaaS software to manage flow across multiple e-commerce channels.
– Washed up in the tech drawdown.
– Emerging from multi-year business transformation – with the big shift from eBay merchants to large enterprises.
– Subscription-type contracts depend on merchants’ GMV.
– Possible recession and slow-down in e-commerce already priced in, with risk/reward skewed to the upside.
Valuation:
– Currently trades at 2x revenue and 10x EBITDA.
– No direct comps, but companies with similar growth/margin profiles trade at 5x+ revenue.
– With $45m in ’25 cash EBITDA (vs $32m in ’21) and 3.5x revenue multiple, would be $30/stock.
Exp. gain: +100% to $30/share by 2025.
Full $ECOM write-up (free guest account required):
https://www.valueinvestorsclub.com/idea/CHANNELADVISOR_CORP/4327327307