The platform underpins SenSen’s lead product SenFORCE, a mobile parking enforcement unit technology that uses video to provide a visual overview of publicly-accessed areas such as car parks.
Another SenDISA product is the Gemineye product, which can slash the cost of smart cities technology by drawing on the power of smartphones.
BW Equities has a buy rating for SenSen with a price target of 19 cents per share (current share price: 9.2 cents).
Following is an extract from BW’s report:
- The technology works and has blue-chip support (Crown, Transurban, BCC)
- Versatile across industries (transport, gaming, tolling) and use cases (dumping, scooters)
- Thematic: Replacing outdated technology (ie. RFID) with video AI
- Efficacy: SNS has never lost a client, typically improves penetration (Bris, Calgary)
The timing is right
- Headline performance has been underwhelming, although…
- …ARR growth was ~150% in FY19
- …And just a single contract will significantly move the needle
- ITS – First Vic/NSW clients + major US city trials underway (~$5m contracts)
- Retail (Gaming) – 5 POC’s live, 17 active opportunities
- Gemineye – First orders have now been placed ▪ Toll Roads – Expansion of the Transurban trials – potentially $8m/year?
Estimates & Valuation
- FY20 revenue growth = ~170% (ARR +110%)
- EBITDA +ve from 2H20
- Valuation is deceptively full @ ~11x revenues (28x ARR)