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ASX:SPZ
Smart Parking Ltd
Investment Summary
The fund managers believe that Smart Parking Ltd (SPZ) presents a compelling investment opportunity, driven by its robust growth trajectory and favorable market conditions. In their opinion, the company's share price has shown significant appreciation, increasing 104% from $0.44 to $0.90, bolstered by a strong financial performance, including a 30% growth in EBITDA and a target of 3,000 parking sites by December 2028. Furthermore, they note the supportive UK political environment and new regulations that enhance SPZ's competitive position. As SPZ expands internationally, the acquisition of Peak Parking is viewed as a strategic move to penetrate the U.S. market and offers 25% accretion to FY25 EPS. The fund managers highlight an attractive valuation with SPZ trading at <11x FY26 EV/EBITDA, indicating potential for substantial re-rating as the market capitalizes on new contracts. Overall, they express confidence in Smart Parking's ability to capitalize on burgeoning global demand and maintain its growth momentum.
Commentary From The Managers
Endeavor Asset Management
24 Apr 2025
$0.79
- Endeavor Asset Management identifies Smart Parking Systems as a top pick for the next three to six months.
- Analysts project a revenue growth of 25% and a shift to profitability by next June.
- Earnings before interest, taxes, depreciation, and amortisation margins are expected to expand from 10% to 15%.
- The stock trades at approximately eight times forward EV/EBITDA, significantly below its historical average of 12 times.
- The global smart-parking market is anticipated to reach $US10 billion by 2028, presenting growth opportunities.
- Smart Parking's expansion in the USA offers clear catalysts for future growth.
- Compared to peers trading at 14 times EV/EBITDA, there is notable re-rating potential with new contract announcements.
Endeavor Asset Management
31 Mar 2025
$0.76
- Endeavor Asset Management notes that Smart Parking (SPZ) has completed the acquisition of Peak Parking.
- Peak Parking is a high-margin U.S. operator generating A$14.7m in revenue and A$5.3m EBITDA.
- The acquisition is expected to be 25% accretive to FY25 EPS.
- Funding was achieved through a $45m capital raise and scrip.
- This deal expands SPZ’s footprint across six U.S. states and 134 locations.
- Despite the strategic benefits, SPZ shares softened post-announcement due to broad macro volatility rather than fundamentals.
- At 77cps, the stock trades on <11x FY26 EV/EBITDA, down from 14.6x pre-deal.
- This presents a 35% multiple accretion and material DCF upside.
- With strong growth, high margins, and planned tech rollouts, Peak is viewed as a compelling platform for SPZ’s U.S. expansion.
- Endeavor Asset Management participated in the capital raise.
Mereweather Capital
28 Feb 2025
$0.88
- Mereweather Capital notes that Smart Parking (SPZ) reported solid but not spectacular results.
- The first half numbers were significantly impacted by the acquisition of Peak Parking, a US-based parking management services provider.
- Financially, the acquisition appears compelling, but operationally, integration into the US market will require considerable effort.
- Peak Parking operates a different business model than SPZ, focusing on parking management for real estate portfolios rather than breach notices.
- Management acknowledged the differences in business models during the results presentation and emphasized their thorough search for US acquisition targets.
- A key factor in their decision was the quality of the Peak Parking team, which they believe will help drive their US ambitions.
- SPZ management highlighted the growth of Peak Parking, with a 45% compounded revenue growth over the last three years.
Mereweather Capital
30 Nov 2024
$0.89
- Smart Parking (SPZ) had a successful AGM update, achieving significant milestones ahead of schedule.
- SPZ management initially set a growth target of 1500 parking sites by June 2025 but revised it to December 2024 and achieved it in October.
- Current management guidance aims to double the business to 3000 sites by December 2028.
- SPZ reported an impressive $5.4m EBITDA in the first quarter, aligning with profitability expectations.
- Mereweather Capital notes that unit economics have been maintained despite rapid growth in site numbers.
- Potential projections suggest $47m EBITDA if the company meets its 3000-site target.
- While reaching 3000 sites seems daunting, previous achievements indicate that significant growth is plausible.
Endeavor Asset Management
30 Nov 2024
$0.89
- Endeavor Asset Management highlights their conviction in Smart Parking as a leading small cap position.
- Smart Parking shares rose 29% over the month, contributing significantly to performance.
- Attendance at the company’s AGM was well received by the market.
- Strong financial performance reported for FY to date with a substantial upgrade to guidance.
- Revenue grew by 24% and EBITDA by 30% in 1Q25 compared to 1Q24.
- Margin Expansion observed, with EBITDA margins improving by 126 basis points year over year.
- New organic growth target set at 3,000 sites by December 2028.
- Aiming for approximately 19% annual growth in car parks over the next four years.
- Endeavor Asset Management began acquiring shares in March at an average price of $0.44.
- Position increased in May and June, with shares closing at $0.90, marking a 104% increase.
- Enhanced margins and revised guidance led to significant uptick in internal valuation.
- Endeavor Asset Management continues to hold Smart Parking, with shares trading at a consensus FY26e P/E of 22x.
- Projected EPS growth of 36% per annum anticipated over the next three years.
Endeavor Asset Management
31 Oct 2024
$0.70
- Endeavor Asset Management notes that Smart Parking (SPZ) was a top contributor, with shares increasing by 19% this month.
- New parking laws launched in October in the UK aim to raise standards across the private parking sector, benefiting Smart Parking.
- The new laws target unfair fines on drivers, which Endeavor Asset Management views as a net positive for Smart Parking's solutions.
- Smart Parking offers an effective management solution for car parks, aiding in the mitigation of car park abuse.
- The company's technology is currently deployed in over 1,000 parking sites across the UK.
- Endeavor Asset Management expects the new code to spur growth in new parking sites and lead to accelerated revenue growth for Smart Parking.
Endeavor Asset Management
31 Aug 2024
$0.61
- Endeavor Asset Management notes Smart Parking (SPZ) reported a strong set of FY24 results, featuring 28% growth in underlying EBITDA.
- The positive results contributed to an 8% rise in share price over the month.
- Smart Parking added more than 300 parking sites in the year, showcasing contributions from all key regions.
- After the results, Endeavor Asset Management met with management to discuss the FY25 outlook.
- Key themes continue to include profitable growth and disciplined site expansion into new regions.
- As a result, Endeavor Asset Management increased its weighting in SPZ, now the top holding in the High Conviction portfolio.
- Confidence in the company’s high growth potential is reflected in this decision.
- SPZ is currently trading at an FY25e EV/EBITDA of 11x, with profit expected to grow by approximately 30% per annum through to FY28e.
Endeavor Asset Management
31 Aug 2024
$0.61
- Smart Parking Ltd (SPZ) reported a strong FY24 results with 28% growth in underlying EBITDA
- Share price increased by 8% over the month
- Company added over 300 parking sites, contributing to growth across all key regions
- Endeavor Asset Management met with management to discuss FY25 outlook
- Expect continuation of profitable growth and disciplined site expansion into new regions
- Endeavor Asset Management increased weighting in SPZ, making it the top ex-200 holding in the Balanced Portfolio
- Confidence in SPZ’s high growth potential
- SPZ is trading at FY25e EV/EBITDA of 11x
- Profit expected to grow by approximately 30% per annum through to FY28e
Endeavor Asset Management
31 July 2024
$0.57
- Smart Parking Ltd. (SPZ) was a top contributor, rising 22% in July.
- The election of a Labour government in the UK has reduced regulatory risk related to SPZ’s UK parking breach revenue.
- As the company continues its global rollout strategy, UK regulation risk is further diluted by a geographically diversified earnings stream.
- SPZ trades at an attractive 14x FY26e P/E.
- Consensus EPS is expected to grow +45% per annum over the next two years.
Endeavor Asset Management
30 June 2024
$0.48
- Endeavor Asset Management invested in Smart Parking Ltd due to its technology-driven approach in the parking sector.
- The fund manager initiated a position because they expect SPZ to effectively replicate and expand its business internationally over the next 3+ years.
- There is an anticipated increase in site additions for FY24, exceeding current consensus estimates.
- Endeavor Asset Management sees a significant market opportunity for SPZ as it expands.
- The fund manager believes that the UK political environment will be supportive of parking regulations, ensuring a favorable operational landscape.
- It is expected that there will not be a burdensome cap on breach amounts, which would positively impact SPZ's revenue.
Endeavor Asset Management
30 Apr 2024
$0.44
- Endeavor Asset Management is invested in parking operator Smart Parking (SPZ).
- During April, the share price increased by 6%.
- A British politician made a supportive comment for SPZ's business model late in the month.
- The comment implied that charges for antisocial parking could rise, which contrasts with previous expectations.
- Smart Parking's revenue is primarily driven by parking breaches.
- Any discussion about increasing the maximum parking charge is likely to be positive for the Company's financial momentum and share price sentiment.
Endeavor Asset Management
30 Apr 2024
$0.44
- Endeavor Asset Management notes a 6% increase in shares of Smart Parking Ltd (SPZ) in April.
- A supportive comment from a British politician regarding antisocial parking charges emerged late in the month.
- The politician's statement contradicts expectations about parking charge increases.
- Smart Parking's revenue is significantly driven by parking breach charges.
- Discussion of raising maximum parking charges could positively impact the financial momentum of Smart Parking.
- This potential change may also enhance share price sentiment.
Please note: The completeness, accuracy or current status of the investments referenced are not guaranteed.
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