Tier1, in the TOP10 of the most bullish small stocks in 2021
It has been trading on the Spanish small securities market for just over three years, enough time for Tier1 to emerge as an investment opportunity to consider for portfolios betting on those listed on BME Growth.
Since its IPO in June 2018, technology increased its market value by 38%, capitalizing today 22 million euros against 16 million with which it started 3 years ago.
But, without a doubt, it was in 2021 that Tier 1 stocks hit the accelerator hard. The titles of the company chaired by Eduardo Fuentesal sneak into the TOP10 most bullish stocks on BME Growth this year, with a cumulative revaluation of 52%.
Moreover, it is precisely in this month of August that the Tier1 shares hit new all-time highs, reaching 22.60 euros at market close.
The business group, with extensive experience in the ICT sector (Information and Communication Technologies) and which offers IT services, with particular emphasis on the development of its software products, has defined a number of very clear objectives as a company listed on BME Growth and works on various fronts to improve liquidity and ensure stability of value, in parallel to improve the relationship with the investor and communication with all members of the market.
One of them, and perhaps the most discussed in the market, was the doubling of the number of shares (split) into which the share capital of the company is divided in the proportion of ten (10) new shares. for each old share, through the reduction of the par value of all shares from ten euro cents (€ 0.10) to one euro cent (€ 0.01), which will be discussed at its general meeting of September 8.
On the financial side, their accounts show significant business growth. Concretely, in advance of the results of the first half of 2021, Tier1 increased its turnover to 8 million euros, which represents a growth of 40% compared to the first half of last year. In addition, EBITDA is over € 1 million, i.e. double that recorded in the first half of 2020.
According to the fundamental analysis of Ei, in a valuation by multiples and under an average market estimate of EPS of € 1.3 / share for 2021, the market discounts a PER of 16v for the TIER1.
“It is not expensive because of the EV / EBITDA and the return on equity is very remarkable, an ROE of 22.7% at the end of 2020 and of 29.55% under the estimate of 2021”, specifies in its fundamental analysis of Tier 1 María Mira, of which recommendation It is “positive for TIER1 securities, without forgetting the risk of low liquidity, which has improved markedly in recent months thanks to the actions that the company is taking ”.
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