Checkit Share Price (CKT)

Up 13% today and no comments for two months???

Sixth sense says this could go to a transatlantic player as it builds scale over there.

TU in 10 days time - decent price for entry. Was 28p a few weeks ago.

Edison also updated its note:

"On an EV/sales multiple of 1.0x for FY24e and 0.9x FY25e, Checkit trades at a material discount to the UK software sector (2.4x current year sales, 2.2x next year sales) and US SaaS peers (6.7x current year, 5.6x next year). If Checkit were to trade on the UK average for FY24e, it would be worth 39p per share and moving to trade in line with US SaaS peers would imply a valuation of 89p. Sustained ARR growth will be the key trigger for Checkit to attract a multiple more in line with SaaS peers, evidenced by customers signing up to use its software and existing customers expanding their usage. Faster movement towards break-even should also support the share price. "

"CKT has released a positive H1 update to July, which highlights continued strong ARR growth of +24% y/y to £12.6m, while FCF burn has almost halved - from £-5.0m to £-2.8m and so means Checkit is making meaningful steps towards breakeven. Progress on both fronts is very supportive of the investment case in our view. Driving this, CKT has continued to see very encouraging growth in the US – ARR: +41% y/y to £3.2m, while adjacent to this, upsell/cross-sell deals (with existing customers) also continues to be an important theme, thus providing predictable underlying growth. NRR of 113% also highlights this, while similarly, GRR continues to be very healthy too (at 98%) and reflects the mission critical nature and strong ROI of CKT’s hardware and software, in our opinion. In view of this very solid start, we our maintain our FY24 & 25 expectations - looking for continued healthy growth and a further narrowing of P&L losses profile, such that, in our view, it’s very conceivable CKT could reach breakeven in FY26 - and importantly – with existing cash resources. This increasing likelihood seems at odds with the company’s very modest 2x mkt cap/sales multiple and herein lies the opportunity."

This business is doing very well in a difficult market.