ASX:B4P
Beforepay Group Ltd
Investment Summary
The fund managers believe that Beforepay Group Ltd presents a compelling investment opportunity. They note the company has achieved significant growth with over 250,000 active customers and declining loss rates of 1.1%, reinforcing its path to profitability with consistent margins over the past three financial halves. Additionally, the fund managers highlight the company's sub $50 million market cap and $18 million in cash, which further accentuates its appealing valuation. In their opinion, the expansion into outsourced credit risk scoring via Carrington Labs could exemplify strong future earnings potential. With initial customers in the US and the prospect of commanding very high margins, this new venture could serve as a catalyst for a significant rerating of the company's stock, enhancing its attractiveness to investors.
Commentary From The Managers
Cyan Investment Management
31 Mar 2025
$0.99
- Cyan Investment Management initiated a position in Beforepay Group Ltd due to its significant growth and customer base.
- The company boasts over 250,000 active customers and profitability for the past three financial halves.
- Declining loss rates (1.1%) and improved margins highlight the business's positive performance.
- Beforepay's current market cap is under $50m, with $18m in cash reserves indicating a solid financial base.
- The company is expanding into outsourced credit risk scoring through Carrington Labs, leveraging data from its lending business.
- Initial customers have been secured in the US, with potential for high margins and further client acquisition.
- This expansion could serve as a catalyst for significant rerating of the company.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.