MiX Telematics (MIXT), mcap=$117m, price $8.02 vs $9.00

– Subscription-based telematics solution providers in South Africa account for >50% of revenue.
– High ROIC and strong moat with 3-year contracts and high customer switching costs.
– Trades at near through multiple of near through earnings.
– Rerun of 2016-2019 high growth period expected as O&G subscribers in Americas start reactivating $MIXT services – Americas EBITDA is currently down to $1m from $10m pre-covid.
– In-vehicle CAPEX is a leading growth indicator and has increased to a record $18m vs $13.6m pre-covid.

– Trades 1.2x sales and 5.4x EBITDA on anĀ  LTM basis.
– Trades in line with lower quality peers $CAMP and $PWFL, both of which are unprofitable businesses with lower GMs.
– Similar margin/growth profile peer $TRMB is at 4x sales and 18x EBITDA.

Exp. gain: 2x from current prices.

Full $MIXT write-up (free guest account required):

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