IaaS is asset heavy business here with AssetTurn of less than 1.
With OPM of 50%, they can keep adding assets (which are considered as having 3 years life on books giving ample cash saving to buy more assets)
Company can grow at (OPM-Tax rate) ‘if demand is there”.
I am not a technical person in this field but this seems a value chain
source : IaaS vs. PaaS vs. SaaS
More services you add, more revenue can be generated with lesser assets.
If co improves AssetTurn , this can be a very good investment and I think managment also knows the same.
Someone in AGM asked question mentioning co as a provider of Equipments on rent (Balance sheet shape similar to recent SME IPO of silicon rental), management answer was like consider us as a technology company and not rental co. Strong dollar is good when AssetTurn improves and bad if AssetTurn remains below 1.
Following this…
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