BVS – Bravura Solutions
Hi, Does BVS stock code represent value at its current price of $1.3x. Do you anticipate IT Product/Services companies to provide good returns once interest rates soften during the next 12 months or so. Thank you.
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Answer
Hi Danny,
Bravura has had a significant fall from grace over recent years, however, the provider of wealth management applications software to the pension, investment management, and life insurance industries has gotten back on track under new management, and the turnaround has been one of the best we’ve seen. In FY24, they returned to profitability enjoying more than $14mn net cash inflow for the year, helping the company end the year debt free and with $90mn in the bank.
The board refrained from paying a dividend but they did announce a proposed capital return of $75.3mn and a $20mn on-market buyback. Also encouragingly over the last year insiders have been accumulating stock albeit at lower levels.
- We like BVS below $1.50 but its likely to be a volatile ride having already corrected over 30% once in 2024.
